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GPS navigators market is close to glut

19 April 2008
Written by: webmaster Posted under Corporations

Manufacturers of portable navigating devices are getting worried: now consumers prefer to buy not GPS devices, and cell telephones with already built in GPS navigation. In this connection the majority of the large companies, engaged in manufacture of GPS devices are facing sharp decrease in a sales volume and, accordingly, profits.
Moreover, experts mark that if the companies wish to survive, they should change completely the strategy - or to reduce of the price for the devices, or to develop navigators with a lot of functions.
During last years demand for these devices has been growing with very fast rates. However, recently buyers become more legible and often prefer to get cellular telephones with built in GPS function. For example, such smartphones as Nokia N95, besides of phone function, combine a huge quantity of other devices, in particular GPS navigation.
Certainly, many buyers still prefer GPS devices. However, demand for them is promptly decreasing - in many respects owing to toughening a competition. So, company Best Buy offers about 59 navigating devices. And some devices can be bought less, than for 200 dollars.
In this connection large manufacturers of such devices already predict decrease in their profits. For example, one of GPS market leaders TomTom has informed, that its profit can decrease on 40 % while company Garmin speaks about decrease in profit on 36 %.
And it is impossible to forget, that now GPS navigators are used more often in cars. So, the built in systems can show electronic card, allowing drivers to supervise a route of movement and to search for the necessary addresses, restaurants, hotels and other objects.




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