(http://i34.tinypic.com/2u7yag2.jpg)
SAN FRANCISCCO (Dow Jones)--Shares of navigation device makers sunk Wednesday after Google Inc. upgraded its (http://i35.tinypic.com/qyg769.jpg)
smartphone software to include a free navigation feature. Google's move highlights how top navigation device makers Garmin Ltd. (GRMN) and TomTom N.V. (TOM2-AMS) now face stiff challenges from Nokia Corp. (NOK), Apple Inc. (AAPL), Research In Motion Ltd. (RIMM) and other smartphone makers which are adding navigation features to their gadgets.
Now comes Google, enabling more competition. In a blog posting, the Mountain View, Calif.-based Internet search giant introduced Google Maps Navigation, which provides turn-by-turn directions based on up-to-date maps and business listings from Google Maps and can be found within Google's Android operating system.
One of the first Android smartphones to feature navigation is the Motorola Inc. (MOT) Droid. The $199 phone goes on sale Nov. 6 through Verizon Wireless, a joint venture between Verizon Communications Inc. (VZ) and Vodafone PLC (VOD).
The move sent shares of the top two navigation device makers reeling. Shares of Garmin fell 17.2% to $31.88 on very heavy trading, foiling any lift shares would have seen from an upgrade Wednesday from Goldman Sachs, which raised its Garmin rating to sell from conviction sell.
A Garmin spokesman wasn't immediately available for comment.
Meanwhile, TomTom N.V. shares fell more than 20% to EUR8.11, a new 52-week low. The company also warned Wednesday that selling prices were 9% lower than it had forecast.
A TomTom spokesman was unavailable for comment.
source:wsj