GPS: Are the all-in-one-device the right direction?

Here is a comment on a trend we already mentioned out: GPS device are no pure GPS devices any more but fullyintegrated all-purpose mutli media machines. But does this make sense?

A plain old car navigation system just won't do anymore. A device that only helps you get from point A to point B is so yesterday.
Device makers now are loading up their GPS satellite navigation gadgets with digital media, real-time data and communications features.
Makers of in-dash and portable car navigation gear are racing to add new capabilities to their devices to stay ahead of low-cost, entry-level devices. Those cheap rivals include GPS-enabled smart phones and personal digital assistants that can handle basic point-to-point directions and routing on digital maps.
Garmin, (GRMN) the market leader in portable navigation devices, has included Bluetooth wireless connectivity in its newest models. With Bluetooth, drivers can make hands-free phone calls through their navigation device linked to their cell phone.
Directions, Music and Books
Garmin also is adding real-time traffic data so drivers can spot gridlock ahead and find an alternate route.
Plus, Garmin is putting MP3 music and audio book players into some models.
Consumers are looking for more from their navigation devices because they don't need to get directions very often. If they mostly commute to and from work, they'd like to listen to music or audio books and get traffic and weather alerts as well, says Garmin spokesman Ted Gartner.
Olathe, Kan.-based Garmin has about 50% market share in portable navigation devices sold at retail in the U.S., according to market tracker NPD Group. Netherlands-based TomTom is second with about 20%.
The Consumer Electronics Association expects sales of portable navigation devices to rise 21% this year to 858,000 units in the U.S. Such growth has prompted large consumer electronics firms such as Sony (SNE) and Pioneer Electronics to come out with their own products.
Portable navigation systems typically sell for $500 to $1,000. But global position systems (GPS) for smart phones and PDAs can cost as little as a couple hundred dollars.
Portable navigation devices have a technology lead over factory-installed systems because of the time it takes to get new technology into cars, minivans and SUVs.
The factory-installed systems also are expensive, costing $1,500 to $2,000.
Automakers believe people who buy portable navigation devices will switch to installed systems when it comes time to buy new cars.
Factory-installed or dealer-installed units typically are more attractive because they're part of the dashboard.
Portable units are stuck to the inside of the windshield and have unsightly power cords plugged into the cigarette lighter.
Installed units also can be integrated with other car electronic systems. The same in-dash screen can be used to access a premium sound system, make cell phone calls and get status information about the vehicle.
It can display video from a camera looking behind the car to assist with parking and to avoid hitting children or backing into obstacles.
"Think of it as a multifunction, multimedia PC with high-resolution graphics and a fantastic audio system behind it — and navigation is one of many applications," said Phil Magney, an analyst with the Telematics Research Group.
Makers May Face A Squeeze
Such sophisticated technology packages already are in luxury and near-luxury cars, such as Mercedes-Benz and Lexus, he says.
They aren't cheap. Such packages can add $5,000 or more to a car's price.
The market for portable navigation devices, which can be used in different cars or taken on trips, will continue to grow in the short term, says Mark Fitzgerald, an analyst with Strategy Analytics.
"But they're going to get squeezed on both ends of the market," Fitzgerald said.
"The automakers are going to have cheaper, better systems in the vehicle," he said, "and then the phones on the other end of the scale are going to push in on that market."
The trend toward more telematics and entertainment systems in cars and trucks will benefit a host of tech companies.
That includes system suppliers such as Alpine Electronics, Denso, Delphi and Visteon. (VC)
Component suppliers such as Sirf Technology Holdings, (SIRF) which makes GPS chipsets, also stand to gain.
The Telematics Research Group expects shipments of portable and factory-installed auto navigation devices to exceed 16 million units a year by the end of the decade. That's up from shipments of 2.6 million units last year.

Related news: Foursprung, P4MR, GPS

Source: Investors.com

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