Major vendors are starting to pull out of the GPS navigation market as demand for the devices started to wane and analysts predict that future sales will be at low margins. Among the latest to exit the market are Panasonic and Harman Kardon.
Others that have left the market this year include JVC and Audivox Navman was also purchased by Mitac in early 2007.
According to TWICE in the USA, Panasonic said its market exit applies only to personal navigation devices. Harman/Kardon said it discontinued sales under the Harman/Kardon label and did not end up shiping the Becker branded line introduced at International CES last year.
It withdrew “due to the aggressive price cutting that is straining margins for competitors in this segment.
Earlier this week Magellan announced it reached an agreement to sell its consumer navigation division to Mitac, the parent of PND competitor Mio, as the list of PND suppliers continues to contract.
Consumer electronics retailers are now reporting a glut of inventory at the low end of the market with ALDI now selling a portable navigation device for $129.00
He predicted sales for the industry for the fourth quarter will be flat in units and dollars. Last year for the quarter, sales were up by an estimated 400 percent.