SPRING NEWSLETTER 2007
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See THE MOVE by George Valentine CFO - Details about our new location!
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CES 2007: CONSUMER ELECTRONICS SHOW, January 8-12 Las Vegas
By David Dominy CEO

GPS Central was well represented at this year's annual gathering of the consumer electronics industry in Las Vegas. We toured 62 football fields of exhibits.

According to attendees, the world of GPS is bursting at the seams. GPS technology is appearing in every imaginable electronic device from phones, to PDAs, to laptops, to TVs, to MP3 players, to cameras, to electronic golf score cards, to key fobs and beyond. Screen quality is improving rapidly. User interfaces are becoming more intuitive. Battery life is improving. Signal lock is virtually instantaneous. Everything is getting smaller. And the proliferation of manufacturers offering GPS units for sale continues. ('Build' quality however remains a significant challenge and varies greatly from one manufacturer to the next.)

Perhaps the most significant development in GPS technology is the emergence of robust tracking devices for the consumer market place. With assisted GPS technology and cellular triangulation, the devices are able to establish and communicate location almost anywhere. The device's size is shrinking: most are smaller than a cell phone and some as small as a box of wooden matches. Power consumption has been constrained by the use of motion switches and variable timing.

From the manufacturers' end, Garmin continues to dominate the market. Their new GPS devices like the nuvi series lead the industry in ease of use, robust signal reception and add-ons, including MP3s and language features for travel. We didn't see their lead in design or quality being threatened anytime soon, though we were disappointed with their 'dog' tracking product which looks like a take off on something from the Jetsons. My Fido would tolerate something like that for about nano-second.

Magellan's new CEO, Nelson Chan, most recently of Sandisk fame (where he built an organization from zilch to $6 billion in annual sales), believes that the market for GPS Navigation devices will continue to grow at between 20% and 30% annually for at least five years. Supported by investment capital from the new private equity owners, Shah Capital, his strategy is to revitalize the Magellan brand through the launch of several new products in 2007, including a new line of handhelds loaded with AAA travel content and voice-recognition device controllers. We expect a revitalization of this product line in 2007, following on the heels of a disastrous 2006 where product design, quality and after-sales service lagged the market.

Not much new from Lowrance this year. They intend to focus on the marine segment of the market, with limited product offerings in the handheld sector.

An up-and-comer in the North American market for handheld GPS is Navigon, the third largest manufacturer of GPS receivers in Germany. They have several innovative products on offer, including compact navigation devices and a very slick auto-nav unit licensed by Porche design. We will be making the Navigon line available to our customers shortly.