Taiwan GPS PND makers face falling gross margins

Taiwan GPS PND makers face falling gross margins

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September 2006 – The gross margins of OEM manufacturers of GPS (global positioning system) PNDs (portable navigation devices) have dropped 5-10% from last year due to increased competition from makers in China and South Korea, according to industry sources.

In order to minimize GPS navigation software costs to maintain its gross margin, Mitac International, currently the largest OEM maker of GPS PNDs in Taiwan, has changed software partners many times in the past three years, sources pointed out. Past partners with the firm include Canada-based Destinator Technologies, Germany-based Navigon AG and now Hungary-based Nav N Go, the sources pointed out.

Besides stiff competition, Taiwan-based OEM makers of GPS PNDs also face bottlenecks in technological development and slower than expected growth in the global market, the sources noted.