PND shipments in trouble

Berg Insight said that global PND shipments are forecasted to decline to about 23 million units in 2016, due to increasing competition from smartphones and low-cost in-dash navigation systems. According to a release by the group, the number of mobile subscribers using a turn-by-turn navigation app or service on their handset doubled in 2011 and reached 130 million worldwide. The subscriber base is forecasted to grow at a compound annual growth rate (CAGR) of 21.9 percent to reach 340 million users worldwide in 2016. Easy availability and attractive pricing are the key factors driving consumers toward navigation apps. “The global active installed base of smartphones surpassed 700 million units at the 2011, which is approximately 15 percent of all mobile phones in use”, said André Malm, Senior Analyst, Berg Insight. Of those subscribed to these mobile navigation services, about half use free apps and services that are part of their service plan. A silver lining maybe in the growing shipments of PNDs in markets such as Brazil, China, India and Russia, but Berg Insight said it doesn't expect outweigh declines in Europe and North America.