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Shares in Dutch navigation systems company TomTom rose as much as 7.2 percent on Tuesday on market rumours that Microsoft was interested in buying the company, though TomTom denied it was in talks.
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“There is a rumour that Microsoft is interested in TomTom,” said a London-based trader, while another Dutch-based trader said the bid talk and an upbeat note from a brokerage was pushing up the stock.TomTom, which makes portable navigation devices for cars and mapping software for handheld computers, forecast 2006 sales of 1.1 billion to 1.3 billion euros, targeting an operating margin of 20 percent.
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Europe is currently the biggest market for these devices, with the United States a distant second. TomTom is European leader with more than half of the market for standalone car navigation devices.
The theory is that Microsoft could use TomTom as another entry point into the automotive systems market
It may not be at the top of the list when you think about Microsoft, but they have a tidy little business in auto accessories running Windows Automotive ([1], [2]). The latest achievement is the realization of a deal they announced with Fiat in 2004:
Fiat and Microsoft will launch Blue&Me based on Windows Mobile for Automotive at the 2006 Geneva Motorshow later this month, marking a significant milestone in the evolution of in-car communication, infotainment and entertainment systems and providing all vehicles in the Fiat, Alfa Romeo and Fiat Commercial Vehicle ranges with a competitive advantage.
Blue&Me will feature hands free access and control of the vehicle’s audio system and Bluetooth phones via voice recognition and includes reading text messages via text-to-speech conversion. It’s apparently designed with enough flexibility to work with a range of phones. There’s also a USB hub in the glove box for patching in your own audio content. Future plans include GPS and related navigation aids. Best line goes to Matt Whipp at PC Pro:
Suffice to say then that with the claimed voice activation needing no training, you are probably best advised not to play ‘Show me the way to Amarillo’ on your in-car Windows Media Player, unless you actually want to end up there.
Update: Google is in the automotive game as well, although it’s early days yet for them.
Paul Thurrott does a concise job of listing the Apple press releases and rating the items discussed in Steve Job’s keynote yesterday at Macworld. From a Microsoft news perspective, the highlights were:
Microsoft Commits to New Versions of Office for Mac:
Microsoft Corp.’s Macintosh Business Unit (Mac BU) today announced at Macworld Conference & Expo 2006 a formal five-year agreement that reinforces Microsoft’s plans to develop Microsoft® Office for Mac software for both PowerPC- and Intel-based Macs. The Mac BU outlined several upcoming improvements to Entourage® 2004 for Mac and said it plans to build converters to read the new Microsoft Office Open XML Formats. The commitment agreement and product announcements emphasize the cooperation between the two companies and serve as significant indicators of Microsoft’s ongoing commitment to the Mac platform.
Not really a surprise, but nice to know for Apple users. Office for Mac is undoubtedly profitable, but really a sideline for Microsoft except in the sense that it demonstrates that Windows does not absolutely control the desktop. There were no dates, but more details in a Q&A with Roz Ho, Microsoft’s General Manager of the Macintosh Business Unit.
Apple introduces Intel based iMac and MacBook systems: Changing the CPU in a Mac is mostly irrelevant to Microsoft other than making the Office for Mac team do some extra work. And for complete irrelevance, there’s been a good deal of press buzz about an Apple executive’s interview statement that they wouldn’t prevent users from loading Windows on the systems. If he’d mentioned Linux too, it would have been a press jackpot.
iPod: An FM tuner for the iPod was finally announced as well more content for iTunes. Also announced over the over the weekend was optional iPod integration on Chrysler vehicles:
The Chrysler Group today announced that it will be the first American automaker to provide full iPod integration as an option in most of its 2006 models, with over three million 2006 Chrysler, Jeep® and Dodge models offering seamless iPod® integration beginning this spring. Drivers will be able to listen to their iPod through the car’s audio system, select their music by artist, album or playlist with radio or steering wheel controls and view selections on the radio’s display.
The effects of these items on Microsoft are indirect in that they merely make the barrier higher for catching the iPod with Microsoft’s own online media, portable media, and automotive offerings.
Some other Microsoft announcements:
At the 2006 International Consumer Electronics Show (CES), Microsoft Corp. showcased several new products built on Windows® Automotive technologies delivering advanced in-vehicle communication, navigation and digital entertainment experiences for consumers. Alpine Electronics of America Inc., consistently ranked No. 1 by J.D. Power and Associates in customer satisfaction, unveiled a new portable navigation device called Blackbird and a new aftermarket in-vehicle navigation system, the NVE-N872A. In addition, Microsoft showcased the Windows Automotive-powered navigation system in the new Honda Odyssey minivan, Honda Ridgeline truck and Motor Trend’s Car of the Year, the 2006 Honda Civic.
These new navigation systems provide satellite-guided turn-by-turn directions and useful features such as voice-guided controls and information on more than 7 million points of interest, including Zagat Survey restaurant guide information, to make getting from place to place easier than ever.
Microsoft Corp. and KVH Industries, Inc., today announced an agreement to bring the MSN® TV service to consumers traveling in cars, trucks, RVs and boats throughout the United States. KVH’s Mobile Internet Receiver with MSN TV service, a customized version of the MSN TV 2 Internet & Media Player, will provide in-motion access to Web browsing, Microsoft® Windows Media® Player, MSN Mail and MSN Messenger, digital photo viewing, MSN Video, and MSN Radio with two-way connections made possible by broadband EVDO cellular services. The result will be the first in-motion product to offer consumers easy-to-use, high-speed Internet access on the television screens already installed in cars and other vehicles today. KVH’s Mobile Internet Receiver with MSN TV service will also include Wi-Fi output to provide Internet connectivity to a wide range of Wi-Fi-enabled products.
And no consumer products show would be complete without the latest in Microsoft SPOT products which now seem to mostly fit under the MSN Direct brand for FM subcarrier broadcasting:
Microsoft SPOT Unveils Next Generation of Smart Watches, Expands Smart Product Suite With Weather Stations. It’s a new ABACUS Smart Watch from Fossil and a weather station from Oregon Scientific that also got its own press release.
