GPS Prices: Where Are They Now?
According to the National Academy of Sciences, June 26, 1993 is the date when the U.S. Air Force launched the 24th Navstar satellite into orbit, completing a network of 24 satellites known as the Global Positioning System (GPS). GPS is used for everything from finding ships at sea, to plane navigation, to mapping, measuring the earth and surveying. While GPS may not have originally been intended for public use, technology has a way of trickling down to the consumer space. Now, via a handheld device, car mounted unit, or even cell phone, users can track their location to within a few hundred feet. Combine that with maps and a signal from an atomic clock, and you can see where you are in relation to where you want to be.
As technology becomes more popular, its price also tends to come down. However, that's theoretical - we took advantage of information from PriceGrabber.com to take a look at the trends in GPS sales and prices. The GPS Pricing Trends data is sourced from Market Reporter, a statistical database that tracks actual consumer shopping behavior on PriceGrabber.com.
GPS Pricing Trends
For February 2007, the average price of GPS products was $433, a 15% year-over-year decrease from February 2006. Holiday shopping in Q4 of 2006 marked the quarter where prices dipped significantly below the $500 range that the GPS market had maintained over the course of the two previous years. Finding your way to that that holiday dinner must be harder than it used to be...
A closer look at average prices, segmented by manufacturer, reflects a wider range of pricing for GPS products. As of February 2007, the average pricing for Garmin products remained fairly constant, staying close to the $500 range mark over the past two years, with a minor jump closer to $600 in October 2006. Garmin's consistent pricing strategy for the past two years has now made it the most expensive in average pricing for all its GPS offerings, compared to other manufacturers in the first two months of 2007. Mio and ViaMichelin, which are newer to the GPS market, offer lower-priced alternatives for consumers, with recent average prices on GPS products now at the $200 range. Their pricing strategy is clearly targeting mainstream consumers. The remaining GPS manufacturers, such as TomTom, Magellan, and Lowrance, have had fluctuating prices for the past couple of years; they all have now reached an average price range just below $400.
Seven out of the top ten most popular GPS products are produced by Garmin. TomTom and Mio, both known for offering affordable GPS products for the mainstream consumer, also made it to the top ten list. Being the main manufacturer on this list, Garmin's GPS products had an average price of $467. Non-Garmin GPS products on the list had an average price of $307, 34% lower than Garmin GPS products. (The new guys on the block nearly always undercut the price of the top dog to try to get a piece of the market, regardless of the industry.)
Prices for GPS products have come down substantially in 2007. Older models launched in 2005, with staying power in the top 10 list, reflect the large pricing decreases for GPS products. The Garmin Nuvi 350 Personal Travel Assistant dropped by 38% in price, year over year; the Garmin StreetPilot c330 GPS fell by 45% year over year; and the price of the Garmin StreetPilot c550 GPS decreased 26% year over year. If you can get by with an older model, you might find yourself a good deal.
