Slower PND Price Cuts Are Seen
By Joseph Palenchar On Mar 10 2010 - 3:02pm
NEW YORK — TomTom and Garmin
forecast slower declines this year in the price
of portable navigation devices (PNDs), the
companies said in their financial reports.
In 2010, Garmin forecast PND price
declines of 10 percent, which is less than
in previous years.
For its part, TomTom said the decline
in the average selling price (ASP) of its
PNDs worldwide continues to slow, with
its 2009 ASPs falling 21 percent to $125
after a 2008 decline of 31 percent and a
2007 decline of 37 percent.
TomTom also reported that its fourthquarter
PND sales for the period ending
December rose in North America by 8
percent to 8.6 million units.
In the fourth quarter of 2009, TomTom
also said it sold 100,000 downloads of its
navigation app for iPhones worldwide,
and it grew its fourth-quarter North
American PND unit share sequentially
to 29 percent from 20 percent.
Garmin, which enjoys top U.S. and
worldwide PND market share in units,
forecast that its 2010 automotive and mobile
revenues would be flat to slightly declining,
while overall revenues would be
flat to up 5 percent. Growth will be driven
by increases in the company’s other
segments as well as in Nuvifone and
OEM opportunities, the company said.
In a written statement, chairman/
CEO Min Kao said he was disappointed
in sales of the company’s Nuvifone PNDequipped
cellphones to date but that its
two next-generation phones shipping in
the fi rst half “will be well-positioned in
this competitive market.”