January 28, 2008

GPS Market Share Changes - Big Moves Through Discounting

According to NPD, market share of the GPS market moved around a bit in the last three months of the year. The same big names were there, but the percentages moved. Sure the big loser in share is Garmin - they had the market share to lose.

Unit Share Oct - Dec 2007

Garmin - 37%

TomTom - 27%

Magellan - 19%

Dollar Share Oct - Dec 2007

Garmin - 45%

TomTom - 24%

Magellan - 15%

So What?

Since Garmin's dollar share is higher than its unit share, that says that they held higher average prices across the holidays. TomTom with their low prices on the TomTom ONE ($129 - $149) had temporary price reductions to gain market share during the quarter. Pretty shrewd. Garmin on the other hand discounted steadily, but now can afford a lower priced option (the Nuvi 200) that is selling online for about $185. Clearly their fuller high end sold well also.

Magellan was in a similar place to TomTom, discounts and lower priced units going through the sales channel.

The big deal for TomTom is that once they have the consumers in their brand, they may just see their consumers trade up to more expensive devices down the road, as they stay competitive with new innovations and smart marketing.

In the end, the earnings are coming out later in February; we'll see how the strategies paid off in terms of near-term profits. Did the expanding market lead to better profits for all? Long-term, the market will just get more competitive and better prices for better units.... stay tuned.

From 2006 - the numbers were a little different...

Dollar Share Oct - Dec 2006

Garmin - 57%

TomTom - 15%

Magellan - 12%

Unit Share Oct - Dec 2006

Garmin - 51%

Magellan - 15%

TomTom - 14%

Read More in: Garmin GPS News | Garmin GPS Reviews | Magellan GPS News | TomTom GPS News

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Posted by Scott Martin at January 28, 2008 10:21 PM

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