Global shipments of personal navigation devices (PNDs) slumped last year, while the number of mobile subscribers using turn-by-turn navigation apps or services doubled.
This is according to a recent research report from analyst firm Berg Insight, which also forecasts that global PND shipments will decline to about 23 million units in 2016. Furthermore, Berg Insights says the subscriber base using turn-by-turn navigation apps or services is forecast to grow at a compound annual growth rate (CAGR) of 21.9%.
World Wide Worx's Mobility research has been forecasting a decline in PND sales, as GPS navigation has been available on smartphones for several years, says company MD Arthur Goldstuck. Furthermore, according to Steven Ambrose, MD of Strategy Worx, the trend will not only continue, but will, in fact, accelerate.
Berg Insights argues that the wide availability of GPS handsets and attractive pricing have contributed to the extensive adoption of mobile navigation apps. According to Andr'e Malm, senior analyst at Berg Insight, roughly half of mobile navigation subscribers use free apps and services that are bundled with handsets or service plans from mobile operators.
Furthermore, the active installed base of smartphones surpassed 700 million units globally, Malm says. He adds that smartphones now account for 15% of all mobile phones in use. Smartphones account for 16% of the user base in SA, and this is likely to double by the end of 2012, according to Ambrose.
The standalone debate
Goldstuck says many users will remain loyal to their PNDs because they offer a superior experience to the smartphone. However, he argues that many smartphone users who have not invested in standalone devices will assume the smartphone version provides all the functionality they need.
Ambrose points out that while smartphones are not as effective as current PNDs and do not have all the features of these devices, they have the advantage of being small, and users have them at hand at all times. “Navigation apps, whether free or purchased, are extremely effective and mostly more than good enough,” he adds.
According to Ambrose, another major advantage smartphones have over PNDs (with the exception of a few TomTom models) is connectivity. Smartphone navigation apps are able to offer live traffic updates as well as other up-to-date information because of this connectivity.
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