GPS DRIVES BUSINESS 18/01/2005

Navigation solutions have taken the mobile device world by storm, as all three segments.

There’s a huge market out there. Many cars have already been fitted with travel long distances across countries (£799 inc. VAT), with GPS (Global Positioning System) technology becomes increasingly affordable and user-friendly. GPS handheld sales in the first half of 2004 exceeded total sales for 2003, according to research by market analysts Canalys. More than 720,000 units were sold from January to June of this year in the EMEA (Europe, Middle East and Africa), compared with 700,000 units for the whole of 2003. However, GPS isn’t only available to handheld users. Dedicated and fully-integrated GPS units, called transferable devices, account for about 10 percent of sales. Furthermore, smartphones account for only three percent of sales. TomTom and Route 66 have introduced mobile GPS solutions and more are expected. Looking at all three types of solutions, more than 843,000 navigation systems were shipped in the first half of 2004.

WL asked Chris Jones, Canalys director and senior analyst, about the future direction of the GPS market. “There’s potential for growth in navigation systems. However, the number of cars with GPS has been limited, until recently, to the high end of the market.”

Although handhelds dominate the GPS market, dedicated transferable units are coming down in price in response to the competition. “A lot of people do not need full PDA functionality. They may choose a transferable solution if there’s not such a big difference between the price points of different devices, which has been the case up until now,” said Jones.

To meet rising demand, Navman has launched its latest range of transferable GPS units. The entry-level iCN510 (£499 inc. VAT) can be used for navigation in the car or on foot, and features street-level maps of the UK. The next step up is the iCN635 (£699 inc. VAT). Designed for in-car use, it includes a remote control, 3.8-inch display and maps covering the UK and major roads of Europe. Finally, there is the flagship iCN650 for drivers who street-level maps for the whole of Western Europe. The iCN510, iCN635 and iCN650 will be available in October. “One aspect of the new iCN range is the ease of use. Gone are the complex Internet registration procedures. Instead, users can operate all the iCN systems straight from the point of purchase,” Martin Capel-Smith, European Marketing Manager for Navman, told WL.

“The fundamental features of previous iCN generations – Back-On-Track technology, 5-digit postcode search, voice instructions, and the avoid area function – have been improved. New features include the Point of Interest (MyPOI) import tool, active and nearest POIs, multi-destination routing, and continuous navigation throughout the major roads of Western Europe.” Today’s navigation solutions offer more choice than ever before. Jones predicts a booming market as people discover how easy GPS technology makes travelling from A to B and decide they can no longer live without it.