Apple unveiled a brand new maps feature for the iPhone Monday that will include turn-by-turn navigation and traffic views as well as full integration with the iPhone's voice assistant Siri.
While the new feature is a positive development for iPhone users, it's not good news for Garmin (GRMN), the biggest maker of GPS devices.
"Several tens of millions of iPhones have overnight become full-fledged GPS devices," said Yair Reiner, analyst at Oppenheimer, who warned clients in a research report leading up to Apple's announcement that a significant upgrade to the maps application could have a "substantial" impact on Garmin's stock.
Shares of Garmin tumbled more than 8% Monday after Apple (AAPL) revealed its updated maps.
While Reiner believes that some users may still prefer to have a separate GPS device from their phone to easily manage incoming calls while simultaneously navigating, "it's safe to assume many more will decide that their phone can serve their GPS needs just as well."
On the day Google (GOOG) showed off its turn-by-turn navigation feature in its map application in 2009, shares of Garmin tumbled more than 16%.
But back then, Reiner notes the GPS business made up about two-thirds of Garmin's bottom line. Since then, the company has developed new products, and the navigation device business "is not nearly as meaningful," said Reiner.
|George Harrison estate offended that RNC used his music|
|You can now ride your luggage around the airport|
|Jeff Bezos passes Warren Buffett to become third richest person in the world|
|The last VCR will be manufactured this month|
|Apple Watch sales are down 55%|