TomTom's price cut on iPhone app shows GPS-maker's pain

GPS software- and hardware-maker TomTom slashed prices on its iPhone turn-by-turn navigation app, The Unofficial Apple Weblog (TUAW) reported Monday. The new price for the app providing directions in the U.S. is $49, well down from the original price of $99, as reported by Engadget. The fallout from Google's (GOOG) free turn-by-turn navigation app is clearly being felt by the incumbents -- the same downdraft that pummeled their stock prices the days after the announcement. So expect the price for TomTom's Apple (AAPL) iPhone app to keep heading south.

Black Friday deals for GPS devices from TomTom and Garmin (GRMN) were running well below $100 (as compared to closer to $200 two years ago). In fact, TomTom was selling Black Friday doorbuster models for $59, while refurbished high-end GPS devices have dipped below $50 on eBay. This latest price cut is a further signal that TomTom realizes it won't be able to sustain premium pricing for either its standalone or iPhone software products for very long.