TomTom releases application for iPhone

GPS software developer TomTom has finally released its application for the iPhone, just weeks after the company announced at the World Wide Developer’s Conference in June that it had started developing an iPhone product.

The application is available with maps for Australia, the United States, Canada, New Zealand and Europe, in a challenge to standalone GPS units.

The application uses new technology called IQ Routes to determine the fastest, most efficient route to a destination, not specifically the shortest route. The iPhone 3.0 software, released in June, enables the software to show turn-by-turn navigation instructions.

An accompanying car kit accessory is due later this year, which will provide speakers, a charging dock and the ability to boost the iPhone’s GPS signal.

The app is on the pricy side, costing $99, compared to the average price of about $2 for other apps, although that app is still much cheaper than a standalone GPS unit.

However, the company’s pricing decision is part of a trend to push the average price of iPhone apps upwards. A number of developers, including Rob Murray, the chief executive of Australian iPhone gaming studio Firemint, have been working to lift the rice point of applications towards the $10 mark.

But Marc Edwards, chief executive of Melbourne-based development studio Bjango, says TomTom’s release won’t have too much effect on the App Store and there will still be plenty of 99c apps.

“With our apps, the price point doesn’t feel right for the amount of work, but the return is good. You have to be a little open minded about this. If your business is working at a particular price point, then I don’t think you should question it.”

“I don’t think the release of TomTom will change anything, and it’s probably not going to change anything in terms of pricing. Even if the profit is higher on TomTom, there’s still going to be difficulty in moving the average price higher.”