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iSuppli: Smartphones To Top GPS By ’13

El Segundo, Calif. – iSuppli said the number of smartphones
in use for turn-by-turn GPS directions will surpass the number of personal
navigation devices (PNDs) in use in the U.S. in the year 2013.

During that year, 43 million smartphones will be in use for
turn-by-turn directions in the U.S., compared with 41 million PNDs. 

iSuppli said, “The days of supremacy for the PND in the
global navigation market are coming to an end.”  On a worldwide basis, 305 million smartphones
will be used for turn-by-turn GPS navigation in 2014, compared with 128 million
PNDs.  This year, however, PND use is still
paramount with 114 million PNDs in use worldwide, compared with turn-by-turn GPS
on 57.8 million smartphones, said iSuppli.

“Previously, smartphones were not seen as a threat to the
dominance of PNDs due to mobile handsets’ poor battery life, unclear pricing
structures and inferior interface,” said Danny Kim, global location-based
service analyst for iSuppli. “However, as smartphone design moves forward, many
of these issues have been or will be resolved.”

iSuppli believes that in 2011 nearly all smartphones shipped
will include built-in GPS.

“High-profile” navigation applications for the iPhone from
TomTom and Navigon are also contributing to smartphone GPS usage. Apple now has
eight navigation applications for the iPhone, and iSuppli expects iPhone
navigation users will increase to 28 million in 2013, up from just 2 million in

By contrast, the number of TomTom and Garmin PNDs in use
(assuming PNDs have a three-year lifespan) will not significantly change
between 2009 and 2013. Any new growth in PND shipments is likely to come from
the Asia-Pacific region, Kim said.