We are familiar with the challenges faced by PND vendors.
In these days of cut-throat competition, all satellite navigation device manufacturers strive to design the PND that will outsell all the others.
However, with the recent drop in ASPs (average selling prices) of around €100, even the highest volume sellers such as TomTom and Garmin are struggling to show a profits.
This is the unavoidable result of :
- Too many players in a market where growth has slowed ;
- Virtually all companies developing very similar features for the mass market.
Therefore key challenges include
- Will there be consolidation or elimination of the weakest?
- How can 1st and 2nd tier players differentiate their devices in the mass market?
- What will be the impact of connectivity on the PND category?
- Which new markets should be explored?