Apple announced Monday that the company will use TomTom map information. Also the tech giant said that eight automakers agreed to integrate its voice control technology, called Siri, into their cars.
That would allow users of iPhones and iPads to access music, directions and other information while driving.
Shortly after the announcement, Shares in Dutch navigation device maker TomTom NV rose 12 percent to (EURO)3.653 ($4.56) in Amsterdam.
However, shares of Harman International Industries Inc fell as much as 10 percent on Tuesday after Apple Inc outlined plans to offer voice activated real-time traffic updates and turn-by-turn navigation in cars.
THE BIG PICTURE: Harman supplies audio and entertainment systems to automakers. The company also provides consumer electronics and big speaker systems used for public events.
THE ANALYSIS: Systems that allow drivers to plug smartphones into vehicles are “the greatest risk to embedded infotainment systems” like Harman’s, Baird Equity Research analysts wrote in research note Tuesday.
Analysts have suggested that smartphones and tablets could take over the so-called auto infotainment function in vehicles, displacing the navigation-system makers.
J.D. Power and Associates in January ranked Harman as the top supplier of factory-installed auto navigation systems.
On the same time, TeleNav plunged 7 percent a day after Apple said its new mobile operating system includes turn-by-turn navigation, a change that could mean iPhone users stop paying for TeleNav’s service.