PND goldmine running dry

Portable Navigation Device (PND) shipments will continue to rise next year, but prices will continue to fall.

This is the conclusion of market research by analysts Berg Insight, who anticipate that eroding prices will put pressure on the bottom line for manufacturers.

Berg forecasts that PND shipments will continue to grow over the next three years, peaking at 56 million units in 2012 and then stabilising.

Price erosions, however, will see revenues in the sector decline, starting next year.

Intense competition and the commoditisation of entry level PNDs are the two driving forces behind falling sale prices.

André Malm, senior analyst a Berg Insight, said the PND industry has enjoyed ‘phenomenal success’ in recent years, growing from relative non-existence in 2004 to 37 million units shipped this year.

However, Malm warns that the days of easy profit in the sector are now past, and that manufacturers will have to work increasingly hard to maintain profitability.

Malm believes that mobile broadband connectivity and internet integration will become increasingly important for the industry as it seeks to innovate and adapt to rapidly changing market conditions.

Potential internet functions include live real time maps, traffic information, and helping to make driving more environmentally friendly.

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