Smart Phone Ratings 2009

Smart Phone Ratings 2009 reports GPS car navigation systems and mobile phones increased threat of PND

According to market research firm iSuppli, portable navigation devices (PND) is the technology companies have recently been the most popular one of the products, but now has entered a period of slower growth, prompting the entire supply chain of companies to re-evaluate their business model. After several years of double-digit and even triple-digit expansion, the global PND shipments in 2009 are projected in 2008 fell 0.7%. In the next four years, global sales are expected to remain stable in 2013 is projected at 4,120 million, almost unchanged from 2008.

PND slowdown was due to car navigation systems and GPS mobile phone growth. This phenomenon is affecting the industry’s major manufacturers, from the high-profile pioneer of TomTom’s PND, to Compal Communications, behind the scenes such as contract manufacturers, no exceptions.

TomTom maintain its vitality
“Dutch TomTom startups in 2004, changed the face of car navigation to it from the luxury sedan into the mass market, from the lucrative high car features become commodity products,” iSuppli’s principal analyst for automotive electronics Richard Robinson said, “In just three years, TomTom companies in Europe and on the reputation in its company name has become synonymous with their products, as if sixties and the seventies of the Hoover.”

However, TomTom heavily dependent on the platform for the PND, PND in slower growth and production of hardware costs and increase the risk of the occasion, it has now become a major weakness. Because of this, TomTom’s PND navigation for non-developed areas of competition, new strategies.

“TomTom plans to play to their strengths, using its superior brand image, to expand its mobile phone and car in the growing market opportunities. Based on its alliance with Renault and Fiat’s agreement, its navigation technology will be embedded in them Among the cars, “Robinson said,” The company is also into the ‘application and the map’ in the market most notably those in Apple’s iTunes music store to sell the software. By breaking from PND hardware business, steering navigation content and software , TomTom has emerged from its biggest weakness: the cumbersome PND manufacturing, testing, transportation and sale of businesses. this area is full of challenges, such as inventory, and low profits. “

TomTom’s upside could be very large, according to iSuppli, it may be as high as 25% of the highly profitable Smart Phone Navigation market.

Reduction in contract manufacturing opportunities
In the long run, as PND growth potential is limited, but also for OEM manufacturers lost their appeal, the smaller manufacturers or to opt out of this shrinking market, or has been a leading supplier of crowding out.

“Growth prospects dim and the high concentration of industry, which means a smaller OEM and contract manufacturers in PND reduce the chances of the supply chain,” iSuppli’s electronic manufacturing services (EMS) and original design manufacturing (ODM), senior analyst Jeffrey Wu pointed out, “PND market, the latest development, suggesting sluggish growth in contract manufacturers. one of the few to keep in-house production operations PND OEM’s market share growth rate is higher than those who outsource production of the industry. This has further weakened the smaller manufacturers opportunities. “

Compal Communications Inc. and some other Taiwanese ODM, 2007 Nian to GPS PND as one of the growth momentum. However, even these companies were later reduced investment.

In 2008, only 0.5% of the PND outsourced to EMS providers, less than 1% of the time in 2007. Flextronics is the only one in 2008 produced PND’s EMS providers, mainly because it had previously established relationships with the Navman, Navman was not acquired by PND manufacturers Mio. However, iSuppli predicts that if the further integration of Mio outsourcing, EMS providers from PND manufacturers disappear.

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