Magellan Sold to MiTAC - Keeping up with the Big Two

It takes a lot to impress consumers these days. Very few people are willing to pay for “uni-taskers,” which is to say devices that only perform one task. Gone are the days when a cell phone couldjustbe a cell phone; it must now be an Internet device, a digital camera and an MP3 player.

This need applies to gadgets across the technological landscape. As mentioned previously, one of the major reasons as to why Magellan was unable to stay afloat in a competitive market was due to its failure to come out with new, innovative products that were attractive and had interesting, never-before seen features.

It’s all about keeping up with the Joneses, and in the GPS market, the Joneses happen to be Garmin andTomTom. Both companies are famous -- and make a lot of money -- for their ability to consistently offer cutting edge products that have new features that are not only helpful, but cool and easy on the eyes as well. 

Becoming as successful as Garmin or TomTom isn’t going to happen by creating a device that focuses on the basics. Garmin’s marketing phrase isn’t “follow the leader” for no reason. Though the price may be cheaper, a basic device from an unknown company usually doesn’t offer all of the bells and whistles, such as voice recognition and turn-by-turn voice directions, that something like theNuvi 260Wdoes.

Even more unfortunate is the fact that devices from smaller companies that attempt to offer more interesting and attractive features often have the device’s most basic and necessary features suffer from inconsistencies and glitches. Companies such as TomTom and Garmin are in the enviable position of having absolutely mastered the most basic of GPS functions, and are now capable of developing interesting new products whose focus is on the new, edgy features for which consumers are always looking. 

Magellan, though not as wildly successful as other companies offering GPS devices, wasn’t too shabby either. As mentioned previously, it was not uncommon to find that Magellan had routinely come in third after Garmin and TomTom in terms of sales and popularity in the United States. It was the company’s failure to keep up with its competitors that was the most likely reason for it having to be sold to MiTAC, but what does this mean for Magellan consumers? 

Next: Acquisition Aftermath >>
 

More Opinions Articles
More By Joe Eitel