SALES of mobile navigation devices to Singapore motorists are booming because of growing interest and falling
prices.

It is estimated that local sales in 2007 totalled about $10 million and this year, the figure is expected to grow by at least 50 per cent.

One of the biggest players here is Garmin and it has an estimated market share of about 70 per cent.

The US-made navigators have automotive, aviation, marine, fitness, outdoor recreation and wireless applications.

'Last year, total sales for the whole GPS market were about $10 million,' says a spokesman for Garmin authorised distributor Navi- Com Technology, adding that the majority of these were portable devices.

According to him, in-car navigation systems make up a very small proportion of the total market.

GPS refers to the global positioning system, a satellite-based navigation system made up of a network of 24 satellites in orbit.

The devices rely on GPS to provide information on the user?s exact location and Garmin says its GPS receivers are accurate to within 15 metres on average.

Because of its growing popularity, NaviCom expects Garmin?s sales to double this year.

?The current trend is such that every month, our sales are up even though the economy may not be as strong,? notes the spokesman.

GPS products are becoming popular because more and more motorists are finding it to be more useful than an ordinary printed version of the street directory.

Merdeka Audio managing director Raymond Chua agrees. His company is one of Garmin's biggest dealers and he says sales have spiked since the start of this year because of falling prices.

"The price of GPS systems has gone down a lot," he points out. "It used to  cost about $700 to $800 Now, it is half that price."

For example, one popular Garmin product is theNuvi 205 priced at $398 (beforeGST) and comes preloaded with original maps of Singapore and Malaysia, although more expensive models with additional features such as bluetooth and text-to-speech capabilities cost from $788.

Mr Chua says prices have been falling because of increased competition among makers of personal navigation devices. The consumer's heightened awareness of these gadgets and their functions has also helped sales.

"Another reason is that many Singaporeans drive in countries such as Malaysia and Australia, and they find it convenient to have a handheld GPS-enabled device.They like to know that they are on the right track," explains Mr Chua.

As a result, Merdeka now sells about 500 sets a month, compared with a year ago when it was averaging less than 100 sets monthly.

Among these, Mr Chua says Garmin is his top seller and makes up more than two-thirds of volume. The Singapore-made Tibo comes in second while Shingco from China is third. On a global scale, Garmin is also No 1.

The US company delivered more than 12.3 million mobile navigation devices in 2007 for a 34.7 per cent world market share. In the US alone, Garmin?s market share was 47 per cent.

A year ago, not many people could be seen browsing for such gadgets at Sim Lim Square (a popular destination
for electronics),?says the NaviCom spokesman.

Today, there are so many. Even the number of shops selling these products has doubled."

This articled was first published in The Business Times on July 30th 2008.