Cheap GPS: Slashing Prices this Holiday Season
N800 GPS Jukebox, originally uploaded by Qole Tech
GearLog reported this week that the supply and demand curve for the portable GPS is about to dip down favorably for the buyer. The market for portable GPS grew about 40 percent last year, but this year they are expecting growth to level off significantly, and even drop slightly. The drop in growth will only surmount to about 1 percent, with approximate 42 million units sold.
If you have been shopping for a new GPS within the last couple years, you undoubtedly have noticed that prices have dropped compared to several years ago. You can get a decently loaded unit these days for around $150 to $200, with the better units running around $300-plus. What’s been going on is manufacturing costs for the technology has been steadily decreasing.
There is also that little factor known as competition. While the GPS was once considered a luxury item, now-a-days, you’ll find standard units in just about everything from a Lexus to a Ford. Another reason the marketability for the portable GPS is leveling off, is most companies are preparing for the shift in technology to cell phone applications.
The trend of the cell phone is to become the universal remote control for our life; controlling everything from our homes to our vehicles. There are several mapping programs out, but up until recently their features were not nearly as convenient as the stand alone units.
The old GPS cell phone applications used minimum memory, relying on the server to track your destination and current location. With memory cards becoming smaller and less expensive, the newer applications will load the entire mapping software directly to the cell phone (1GB), where it will be more reliable, convenient, quick, and easy to use.
How Cheap Could We Be Looking At?
The price of a typical units with a nice amount of bells and whistles should settle in around $99 to $125. Even the more elite units shouldn’t cost much more than $250 on average. You can expect these prices to possibly start to settle in just in time for the 2009 holiday shopping season.
Source: GearLog
