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Wednesday's launch of Google Maps Navigation for the search giant's Android mobile platform caused the stock prices of personal-navigation device makers to spiral downward. Clearly, investors fear that Google's free mobile service, which delivers real-time turn-by-turn voice guidance and automatic routing, will hurt the long-term financial performance of rival hardware and software vendors.

Still, Google's announcement was hardly surprising given that real-time navigation was long a milestone on Google's mobile-device road map, noted Charles Golvin, a principal analyst at Forrester Research. The key question for navigation vendors and the wireless carriers, Golvin said, "is not 'Will Google eat into your navigation business?' but 'How will you extend navigation with additional value to compete with Google's navigation offering?'"

Viewing Android In A New Light

It's easy to see why investors are worried. With Google Maps Navigation, smartphones could automatically receive the most up-to-date maps and business listings from Google without users having to purchase map upgrades or update their devices, noted Google Maps software engineer Keith Ito. "And this data is continuously improving, thanks to users who report map issues and businesses who activate their listings with Google Local Business Center," Ito added.

Google Maps Navigation also lets mobile users conduct hands-free searches for destinations by simply speaking the names of the locations they wish to visit, and even receive live traffic information over the Internet. Or "simply enter the name of a business, a landmark or just about anything into the search box and Google will find it," Ito said.

All these features are currently available from other providers, but come at a price while Google's mobile app is free, Golvin noted. Still, the pace at which Google Maps Navigation will end up hurting competitors is partially under the control of wireless carriers and platform vendors, who are likely to view Android...