PNDs Threatened by GPS-Enabled Phones

The personal navigation device (PND) market is reportedly being threatened by the growing presence of mobile phones that include GPS capabilities. Even so, it seems that the PND market is still expected to see growth during the following year, research firm In-Stat reports, though the growth rate is a very small one.

According to the research firm the personal navigation device market is showing signs that it has reached its maturity. The price points for these devices have started to drop fast, and there are signs of consolidation. At the same time, In-Stat also says that shipment growth already slowed down, and that the competition PNDs see from GPS-enabled mobile phones is the greatest threat the PND market faces.

“Drivers for continued PND market growth include average selling price declines, automobile manufacturers' desire to offer more affordable navigation options, and the potential growth anticipated from connected PNDs,” says Stephanie Ethier, In-Stat analyst. “Connected PNDs, like the recently announced Garmin nuvi 1690, can connect to the Internet and receive dynamic information such as flight updates, gas prices, and local weather. These expensive models may be a tough sell in the current struggling economy, however.”

The research firm also published the findings of a new study, which shows that the unit shipments for PNDs are expected to reach 56 million in 2012 all around the world, while the shipments of GPS-enabled mobile phones are expected to triple by 2013, when compared to the number shipped in 2009.

Other findings from the report include:
- The total silicon opportunity for PNDs will pass $1 billion in 2010, before starting to decline. Processors will be the largest semiconductor segment, followed by DRAM and NAND memory.
- Among the semiconductor competitors in this market are Broadcom, Cambridge Silicon Radio (CSR) & SiRF Technology, Inc., GloNav/NXP/STMicroelectronics/Ericsson, Infineon, Qualcomm, Samsung Electronics, and STMicroelectronics.