Handheld GPS Systems take a Hit as Smartphones Thrive

The widespread embrace of smartphones is presenting itself as a huge threat for GPS navigation devices, a new report from the industry research firm Berg Insight indicates.

The first incarnation of GPS, the auto navigation devices from which current technology options sprung, gained tremendous popularity several years ago and became indispensible to most modern drivers. Now, smartphones may mean the end for GPS devices, as they offer the services with little or no additional cost.

The Swedish company that conducted the research observed that personal navigation system sales are not staying competitive enough or producing high enough sales to balance the inevitable losses brought on by the booming smartphone market. The study indicates that global sales of Personal Navigation devices will peak at 42 million in 2011 prior to undergoing a harsh decline that will only continue as smart phones gain prevalence.


“The rapid rate of smartphone adoption is unparallel to previous technologies that over time became ubiquitous. We are at the very beginning of this wave and already it is larger and has more momentum than ever measured before,” says Patrick Bertagna, the CEO of leading GPS company, GTXO.

GPS maker Garmin posted an 11 percent year-over-year decline in revenue in the third quarter of 2011. The sector of the company devoted to GPS for automobile was hit the hardest, not a surprising development against new data showing mobile phone subscribers who use their Smartphone as a navigation device increasing up to 57 percent in the first half of 2010.

Bertagna, anticipated this shift. GTXO has adapted to the changing industry in a way that most companies of its kind will have to do if they want to stay relevant; focusing on cell phone applications and utilizing GPS technology in innovative ways. Bertagna has 17 Applications over three platforms from the iPhone to Blackberry and continually works to stay applicable as smartphone technology improves.

He views smartphones as not just as threat for GPS, but as changing the face for industries across the board. “Your smartphone will soon replace your wallet and everything inside, it will be your ID, credit cards, access to accounts and even your keys to get in your car or house. They will allow you to bank, shop, play, connect with friends and if not too outdated make a phone call. All with more ease and seamless integration with your lifestyle. This is the new frontier.”