Cities Spur GPS Sales
By Alan Wolf -- TWICE, 6/18/2007
PORT WASHINGTON, N.Y. — Boston, New York and Orlando were the hottest markets for GPS devices in the first quarter of 2007.
According to a report by The NPD Group, here, CE retailers in those cities sold more mobile navigation units on a per store basis than those in any other of the country's top designated market areas (DMAs). Indeed, the top three metro areas sold more than twice as many units per store (about 55 devices per store on average for the period) than the bottom three markets (about 23 per store), and significantly more than the national average (about 37).
NPD tracks point-of-sale (POS) information from up to 60 retailers representing more than 15,000 doors across 45 DMAs.
The market research group attributes the phenomenon to the traffic and challenging street grids that are especially problematic in the three top cities, as well as the competitive pricing in those areas. "New York and Boston are as known for their abundance of landmarks as for their thorny traffic jams," observed Ross Rubin, NPD's director of industry analysis. "Consumers in these markets have embraced aftermarket navigation products to help them get to unfamiliar destinations, and represent a strong market opportunity for manufacturers and retailers seeking to offer traffic tracking services."
Boston, New York and Orlando also had average selling prices (ASPs) that were lower than the national average. During the quarter, the ASP of a GPS device across the top 45 DMAs ranged from $507 in Denver to $391 in Connecticut. The national average price was $417.
Yet despite Indianapolis and Salt Lake City having ASPs below or slightly above the national average, both cities were among the bottom three DMAs based on units per store selling the devices. Denver, with the nation's highest ASP, was the third.
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