Handset Navigation Challenges Personal Navigation Devices

2007 is shaping up to be the year that mapping and navigation applications truly arrive on mobile handsets, reports In-Stat. For approximately US$10 per month, handset navigation offers similar, if not superior, functionality to Personal Navigation Devices (PNDs), at a lower price, the high-tech market research firm says.

“With a clear, targeted business strategy that focuses on capturing potential PND buyers, wireless service providers have an opportunity to capture market share from PND manufacturers,” says Stephanie Ethier, In-Stat analyst.

Recent research by In-Stat found the following:

  • The market for PNDs will reach 56 million units worldwide by 2011, up from 14 million in 2006.
  • Market drivers include falling price points, enhanced features, stronger consumer awareness of PNDs, and increased marketing and promotion by leading PND manufacturers.
  • In 2006, PND manufacturers significantly reduced prices, with entry models priced under $200.

The research, “Personal Navigation Devices: Worldwide Shipment Growth to Slow as Handset Navigation Arrives” (#IN0703431ID), covers the worldwide market for Personal Navigation Devices (PNDs). It includes forecasts for unit shipments, average sales prices, and revenue through 2011. In addition, it includes results from a large-scale survey of consumer attitudes toward PNDs and mobile handset navigation applications.

The price is $3,495 (US).

While this most recent report provides insight into why the handset navigation market represents an impending threat to PND shipment growth, the report’s overall focus is the worldwide PND market. For more detailed information relating to the types of applications available on mobile phones for both consumer and business purposes, refer to In-Stat’s recently published report titled Mobile Handset Navigation Apps May Threaten Nav Device Market (#IN0703583MCM). This report also offers a global view of wireless operators and vendors who are providing handset navigation applications.

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