Trimble v. Orbi --
I think that both Orbi and Motorola have potential as car navigation competitors, especially in the US. Orbi, though, has the longest way to go. They have an old product on the market that I believe is inferior in quality and price points to what Trimble is putting out with Microsoft. However, they have an opportunity to improve by linking into the Orbcomm system. It's not entirely clear to me that there is enough of a telematics infrastructure in this country to give Orbi a market advantage, or that Orbi will come up with a quality product in time to do well in the marketplace. Motorola is ahead in the US on the security angle, and has reorganized itself to establish a telematics division.
It is certainly possible that Orbi is drawing investors away from Trimble, since they tend to occupy the same technical niche in the investment community. I always get back to fundamentals, though, and in the areas in which they compete, Orbi is in second place.
TRMB has made very strong alliances in Europe on the telematics front. In fact, I think TRMB has a stranglehold on the European market right now, and will next post a car nav table for Europe. But I am paying attention to see how Trimble does in car nav, directly or indirectly, with the Big Three. Right now, they have Wintel and external suppliers to America, including a strong aftermarket presence (which has been important in Japan), but no firm deal with GM, Ford, or Chrysler.
Let's see the actual numbers for this quarter before assuming it is a problem. What I see, overall, are increasing revenues and profits, and real inroads in car nav and telecommunications, on top of existing lines of business. |
