2007 Gps Pricing Trends Report

Consumer Behavior Report GPS Pricing Trends

V11. 4/07

Overview Report Highlights ƒ

GPS Pricing Comes Down: Pricing for GPS products dropped by 15% year-over-year in February 2007 compared to the same period last year. The average price of GPS products is now at $433.

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Different Manufacturers Reflect Wide Price Range: Current actual pricing data reveals the following average price ranges for all GPS products by manufacturer: $500 average price range - Garmin $400 average price range - TomTom, Magellan, and Lowrance $200 average price range - Mio and ViaMichelin

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Garmin Stays Ahead of the Pricing Curve: The GPS market is still considered a niche market. Although Garmin reaches the high-end consumer offering GPS products in the average price range of $500, 70% of the most popular GPS products listed are Garmin products.

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Downward Trending of Prices May Continue: With the onset of lower priced products introduced by Mio and viaMichelin, we expect to see increased pricing competition between manufacturers. This will lead to further downward trending in pricing for GPS products, as more manufacturers realize the benefits of targeting mainstream consumers at low-end price points.

For additional information on the Consumer Behavior Report data, to schedule phone interviews, or for journalists who would like to recommend a custom survey for their needs, please contact Trisha Mitra at [email protected].

Consumer Behavior Report ƒ

The Consumer Behavior Report tracks behavior of online shoppers and is designed to give merchants, media and industry analysts insight into current shopping trends, and attitudinal preferences of consumers. This month’s topic is on GPS pricing trends.

What is the GPS Pricing Trends data? ƒ

The GPS Pricing Trends data is sourced from Market Reporter, a statistical database that tracks actual consumer shopping behavior on PriceGrabber.com. This report examines pricing trends for GPS products. PriceGrabber.com is a major shopping comparison engine with more than 24 million unique users per month and up-to-date daily pricing of products supplied by more than 11,000 merchants.

CONSUMER BEHAVIOR APRIL 2007 REPORT

GPS Pricing Trends ƒ

For February 2007 the average price of GPS products was $433, a 15% y-o-y decrease from February 2006. Holiday shopping in Q4 of 2006 marked the quarter where prices dipped significantly below the $500 range that the GPS market maintained over the course of over two years. GPS - Historical Pricing $560 $540 $520 $500 $480 $460 $440 $420 Feb-07

Dec-06

Oct-06

Aug-06

Jun-06

Apr-06

Feb-06

Dec-05

Oct-05

Aug-05

Jun-05

Apr-05

Feb-05

$400

Source: Market Reporter PriceGrabber.com 2007 * Pricing based on average monthly price of all GPS products

GPS Average Pricing by Manufacturer $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100

Garmin

Tomtom

Mio

Magellan

ViaMichelin

Jan-07

Nov-06

Sep-06

Jul-06

May-06

Mar-06

Jan-06

Nov-05

Sep-05

Jul-05

May-05

Mar-05

Jan-05

$0

Low rance

Source: Market Reporter PriceGrabber.com 2007 * Pricing based on average monthly price of all GPS products by manufacturer

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A closer look at average prices segmented by manufacturer reflects a wider range of pricing for GPS products. As of February 2007, the average pricing for Garmin products remained fairly constant and stayed close to the $500 range mark over the past two years, with a minor jump closer to $600 in October 2006. Garmin’s consistent pricing strategy for the past two years has now placed it as the most expensive in average pricing for all its GPS offerings compared to other manufacturers in the first two months of 2007.

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Mio and ViaMichelin, which are newer to the GPS market, offer lower-priced alternatives for consumers, with recent average prices on GPS products now at the $200 range. Their pricing strategy is clearly targeting mainstream consumers. The rest of the GPS manufacturers such as TomTom, Magellan, and Lowrance have had fluctuating prices within the past couple of years, and they all have now reached an average price range just below $400. 2

CONSUMER BEHAVIOR APRIL 2007 REPORT

Top 10 GPS Rank 1 2 3 4 5 6 7 8 9 10

Most Popular - GPS Garmin Nuvi 350 Personal Travel Assistant Garmin Nuvi 660 Portable/Vehicle GPS Navigation Garmin Nuvi 360 GPS Receiver Mio C310X Portable Car Navigation System Garmin StreetPilot c330 Automotive GPS Navigation System TomTom One GPS Navigation System TomTom GO 910 GPS Portable Car Navigator Garmin StreetPilot c340 GPS Navigator Garmin GPS MAP 60CSx Handheld GPS Unit Garmin StreetPilot c550 Automotive Traffic GPS System

Average Price $479 $720 $530 $215 $289 $275 $432 $413 $362 $479

Launched Sep-05 Sep-06 Mar-06 Sep-06 Mar-05 Aug-06 Apr-06 Jul-05 Jan-06 Apr-06

Source: Market Reporter PriceGrabber.com 2007 * Top 10 GPS rankings based on clickthrus to merchant, 2/19/07 to 3/5/07 ** Launch date based on first appearance on PriceGrabber.com

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Of the most popular GPS products, seven out of the top ten are produced by Garmin. TomTom and Mio, both known for offering several affordable GPS products for the mainstream consumer, also made it on the top ten list. Being the main manufacturer on this list, Garmin’s GPS products had an average price of $467. Non-Garmin GPS products on the list had an average price of $307, priced 34% lower than Garmin GPS products.

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Prices for GPS products have come down substantially in 2007. Older models launched in 2005, with staying power in the top 10 list, reflect the large pricing decreases for GPS products. The Garmin Nuvi 350 Personal Travel Assistant dropped by 38% y-o-y in price, the Garmin StreetPilot c330 GPS fell by 45% y-o-y, and the price of the Garmin StreetPilot c550 GPS decreased 26% y-o-y in price.

Conclusion ƒ

GPS products have yet to hit the mainstream market. Pricing on GPS units are falling gradually, but the market as a whole remains a niche market with the average price in February 2007 still at $433. Much emphasis has been placed on offering an all-in-one product that includes a digital entertainment system such as music playback, image viewing and storage, and GPS-enabled handsets. As manufacturers roll out newer models into the market, just as much attention should be focused on targeting the mass market through lower price points.

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Manufacturers such as TomTom, viaMichelin, and Mio are offering GPS models with lower prices to attract a wider consumer range. We predict that substantial price drops in 2007 for GPS products are expected with the introduction of newer low-priced models and discounted prices on older models to draw an active marketplace for GPS products. We will track these pricing trends over the coming 12 months.

Disclaimer The information, data trends and analysis in this report were prepared by PriceGrabber.com. This report may not be reproduced, distributed or published by any person for any purpose without PriceGrabber.com’s prior written consent. Please cite source when quoting. Source: PriceGrabber.com Supporting data and information is available upon request.

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