The S430BT in-car GPS navigator from mainland China’s Msur has a 4.3in touchscreen and SiRFstarIII solution. It supports Bluetooth and portable media player functions.

Competitive pressures drive suppliers to reduce prices, improve product development. Entry-level models dominate shipments.

Makers of in-car GPS receivers in mainland China, Hong Kong, Taiwan and South Korea are packing their new releases with multimedia playback function and expanded memory. Bluetooth connectivity has also become one of the hottest add-on features in both in-dash and portable models.

Mainland China makers offer units bundled with extra functions like digital camera, alcohol tester, DVB-T receiver and GSM/GPRS communication. Hong Kong suppliers, on the other hand, have incorporated text-to-speech (TTS) technology into their new models. Taiwan suppliers, for their part, are into software development as they manufacture units with search engine solutions as an added feature.

To expand their market reach, South Korea makers are introducing in-car GPS receivers that support the Transport Protocol Expert Group (TPEG) specifications for transmission of language independent multi-modal traffic and travel information.

Despite the buzz in product development, entry-level models dominate the shipments of interviewed suppliers. This is because price, not extra features, is the main consideration for buyers of in-car GPS receivers.

Interviewed makers agree that the export quotes for in-car GPS receivers will continue to slide due to fierce competition in the industry. While costs of production have gone up, competitive pressures are driving makers to reduce prices by up to 10 percent in 2008. Some makers, however, may opt to keep prices stable to avoid further erosion of their slim profit margins.

Notwithstanding the intense price competition, suppliers remain positive about the industry, as evidenced by the continued expansion of the supplier base. The exception is in South Korea, where the number of industry players has decreased due to market saturation.

The expanding supplier base is largely due to the rapid development and adoption of GPS technologies worldwide, which has helped to lower the barrier of entry for newcomers. However, the proliferation of suppliers is resulting in cutthroat price competition. This has discouraged a few makers from investing in product development. Some suppliers are shifting their focus to full-featured, high-end models with better profit margins.

	The ECG-B403 in- car GPS navigator from Hong Kong Uranus has a 4.3in touchscreen, A/V playback and Bluetooth features.

More than 200 makers in mainland China offer in-car GPS receivers that are integrated in other in-car electronic devices or come as standalone portable navigation devices (PNDs). Mainstream products are PNDs with 3.5in or 4.3in TFT-LCD panels. These typically adopt Samsung ARM9 300MHz or 400MHz CPUs and SiRFstarIII GPS chipsets, with other models using components from Centrality Atlas, Atmel and u-blox. Touchscreen option is also available. Some units run on Windows CE OS.

Most models double as MP3 players and portable media players (PMPs). Also available are units with digital camera, alcohol tester, rearview camera, DVB-T receiver and GSM/GPRS communication features.

Routon Electronic Co. Ltd’s P618 is a 4.3in touchscreen in-car GPS navigator with a built-in 1.3MP digital camera. It features 480x272 pixel resolution. It has a Samsung ARM9 400MHz CPU and SiRFstarIII GPS chipset, and built-in 64MB NAND flash ROM and 64MB SDRAM. It supports an MMC/SD card with up to 2GB capacity. The P618 integrates PMP function, which supports MPEG-1, MPEG-2, MPEG-4, DivX and XviD video decoding, WMA, MP3 and WAV audio playback, JPG, GIF, BMP and TIF image and TXT file display. It also has built-in microphone, FM transmitter and 2,200mAh Li-polymer battery. Routon has 300 R&D engineers in charge of mold and cosmetic design and PCB layout. It subcontracts software design but plans to set up its own team for this in one or two years.

Shenzhen Risita Electronics Industry Co. Ltd’s YH-4301 has a 4.3in touchscreen TFT-LCD panel with 480x272 pixel resolution. It has a Samsung S3C2440A ARM9 400MHz CPU and SiRFstarIII GPS module, and built-in 128MB NAND flash ROM and 64MB SDRAM as well as SD memory card support. The model has a built-in GPS antenna and supports an external antenna. Its accuracy is within 5m to 10m CEP without SA. Cold start is at 42s on average, warm start at 38s and hot start at 1s. The YH-4301 has a voice navigation feature and PMP function that supports WMV video, WMA and WAV audio, JPG, GIF, BMP and PNG image, and TXT files. It runs on a built-in 1,100mAh Li-ion battery. The company has an in-house five-member product development team.

Msur International Ltd has released some models that support Bluetooth connectivity for handsfree telecommunication. Its S430BT is a Bluetooth car GPS navigator. Major features include a 4.3in touchscreen TFT LCD with 480x272 pixel resolution, Samsung ARM9 CPU and SiRFstarIII GPS chipset and Windows CE .Net 4.2 Core OS. The S430BT also has PMP function that supports most popular media formats. Msur has a 45-staff product development team handling PCB layout and mold and cosmetic design. It outsources software solutions to a professional design house.

	NCSNavi’s R120 from Taiwan supports Bluetooth 1.2 and NMEA0183 V 3.01 data protocol. It measures 74x40x9.3mm each and weighs less than 30g.

Hong Kong Uranus Inv. Co. Ltd’s in-car GPS receivers are available in 3.5in, 4in, 4.3in and 7in versions. Model ECG-B404 is a car GPS navigator with a 4.3in touchscreen TFT, FM transmitter, Bluetooth and A/V function. It comes with 64MB SDROM and an SD card slot for additional storage. It runs on Windows CE .Net 5.0. It has a stereo earphone jack, 1W hi-fi speaker and 1,800mAh Li-ion battery with 5hr operating time or 500hr standby time. Aside from the built-in GPS antenna, an external antenna is also available. An AC charger and a car lighter adapter are bundled with the unit.

Hong Kong Uranus’ top-of-the-line model is the ECG-701, which has a 7in touchscreen TFT with 480x234 pixel resolution. This full-featured model embeds a Samsung S3C2440A-40 400MHz CPU, SiRFstarIII GPS chip and Windows CE .Net 4.2 OS. It has built-in 64MB NAND flash memory, external SD card slot, 20-channel signal receiver, and calendar, calculator, alarm clock, MP3/MP4 player, JPEG viewer and text reader functions. Operation may also be via keystroke, with 16 languages supported.

Hong Kong Uranus has 3.5in car GPS devices as its entry-level offering. The ECG-B802 3.5in GPS car navigator has add-on MP3 and video playback, digital album and Bluetooth functions. It has a Samsung ARM920T S3C2440A 300MHz or 400MHz CPU, SiRFstarIII GPS chip and Windows CE .Net 4.2 Core OS. The model’s transflective TFT-LCD color screen supports 480x272 pixel resolution and 64,000 colors. The ECG-B802 has internal 64MB NAND flash memory and 64MB SDRAM, as well as an SD/MMC slot for up to 1GB extra storage.

The bulk of 3.5in units sold by Hong Kong Uranus, however, features basic GPS functions and is stripped of extra features. “For the entry-level segment, buyers want the cheapest prices so they do not want any extra functions that could only increase the price,” said general manager Tommy Chan. Most orders for 4.3in models, however, request for built-in Bluetooth, Chan added. The company will continue to promote its existing models, but no new model will be released during the year. “We want to see first how the market goes. If our customers want us to integrate a DVD player in our in-car GPS products, we will make it for them,” said Chan. Hong Kong Uranus can finish a customized model for an OEM client within one month. “We have the parts already. We don’t have to develop from scratch,” Chan added.

Freeway China Co. Ltd offers two types of in-car GPS receivers: in-dash entertainment devices with navigation function through external GPS boxes, and dashboard/windshield-mounted GPS devices with add-on multimedia functions.

The GD-075 is one of Freeway’s 3.5in portable models. The button-operated model plays MP3, WMA and WMV files, and has calendar and map zoom functions. The GD-072 is another 3.5in model with MP3, WMA and WAV audio playback, JPEG, BMP, GIF and PNG photo display, TXT reader, and WMV9, MPEG-4, DivX, XviD, MPEG-2, WMV, ASF and AVI video player.

The GD-070 is Freeway’s external GPS navigation box. Running on a Samsung S3C2440A CPU, SiRFstarIII GPS chip and Windows CE .Net 4.2 OS, it comes with a DIN cable for connection to a master unit. It embeds 64MB SDRAM and 32MB to 1GB NAND flash memory. An SD card slot and an antenna are included.

Freeway’s GD-070 can be paired with any of its 3in, 6.5in and 7in in-dash DVD players. The DT-0537 is a 1-DIN model with a 7in touchscreen, rear camera video input, 4ch RCA output, remote control, SD and USB slots and auxiliary-in jack. It is iPod-ready and has optional TV tuner, RDS, Bluetooth, and CD changer control interface.

Under development by Freeway is an in-dash entertainment center with fully integrated GPS capability. A 4.3in model may also be released in H2 2008.

	South Korea’s 2MTech Inc. has a SiRFstarIII GPS module-based GPS navigation model, the A7. The model has a 7in LCD monitor and an AU1250 600MHz CPU. Optional features include an RS-232 port for TMC devices, MP3 and MPEG playback, and T-DMB or DVB-T receiver function.

Mainstream PNDs from Taiwan suppliers have 4.3in to 4.8in LCDs, with widescreen and touch-control panels common in midrange and high-end models. Multifunctionality is a typical feature and includes DVB-T receiver, Bluetooth and MP3 playback. Value-enhancing add-ons such as access to traffic message channel (TMC) services are also key features. Models with an IP67 rating can also be sourced from Taiwan.

For PNDs, the Geographic Information System (GIS) is an important value-added feature. PaPaGO is popular in PNDs in Taiwan and mainland China, Novigon in PNDs in Europe and Netropa for PNDs in the US.

To differentiate their products, many Taiwan suppliers concentrate on boosting their software design capability. Some makers employ in-house engineers to design points of interest (POI) and other value-added functions for GIS. dmedia System Co. Ltd has 120 R&D engineers in charge of software and hardware design and 15 QC technicians. Supa Technology Co. Ltd cooperates with Chunghwa Telecom to develop location-based service (LBS) navigators. Supa’s LBS navigators display a map and other additional information by simply keying in the phone number of the destination on the touch panel.

Memory capacity is mostly less than 1GB, but makers forecast that 2GB embedded memory will be mainstream in 2008. For external designs, many Taiwan companies work with design houses to produce fashionable and slim units. NCSNavi Technology Inc.’s R-120 is a Bluetooth 1.2 GPS receiver measuring 74x40x9.3mm and weighing less than 30g.

Pure in-car GPS receivers without navigation displays are also part of Taiwan’s GPS industry. These are mainly applied in fleet management systems, vehicle monitoring and security, truck or trailer tracking, container tracking and mobile asset tracking. Entry-level versions are mouse GPS receivers that support 12 to 20 channels for satellites, and Wide Area Augmentation System (WASS) and European Geostationary Navigation Overlay Service (EGNOS) functions. The midrange and high-end models include Bluetooth 2.0 units that support 32 channels for satellites and data logger function.

Taiwan has between 30 and 50 suppliers of in-car GPS products. This number is expected to grow in the coming years, thanks to the island’s strong GPS industry. In 2008, production volume is expected to reach 33.6 million PNDs, exceeding 2007’s by 45 percent.

	The P618 in-car GPS navigator from Routon of mainland China has a 4.3in touchscreen and SiRFstarIII solution. It has digital camera and portable media player functions.

South Korea’s in-car GPS industry is dominated by 4in and 7in touchscreen models, with the smaller-screen units targeted at overseas markets while the 7in units are more popular in the domestic market. Typical features are Samsung LCDs, built-in HDDs and SD memory card readers for expanded storage. Suction cup is generally used for mounting. Among value-added features, multimedia playback is widely adopted.

Freenex Inc. introduced the PM-430, which has a 4.3in touchscreen LCD. It has Bluetooth, FM transmitter, and MP3/MP4 player functions, as well as rear view camera and TMC ports. The Europe-bound version includes DVB-T receiver function.

The company’s upcoming model targeted at North America, Europe and the Middle East will be an all-in-one in-dash model that integrates GPS navigation, radio, CD player, MP3 player, DVD player and DVB-T receiver functions. Freenex will focus on strengthening the performance of another upcoming model by adopting a 600MHz CPU.

2MTech Inc. has a SiRFstarIII GPS module-based GPS navigation model, the A7. The model has a 7in LCD monitor with 800x480 pixel resolution. Its wide screen offers picture-in-picture (PIP) function. The A7 has IGO license, which is one of the world’s well-known map manufacturers. It has an AU1250 600MHz CPU.

Optional A7 features include an RS-232 port for TMC devices, MP3 and MPEG playback, and T-DMB or DVB-T receiver function.

Freenex and 2MTech expect Internet support to be the next product development focus for South Korea makers in 2008, with GPS navigation devices becoming more like UMPCs. Another possible trend is the convergence of black box and GPS navigation products, which both Freenex and 2MTech are actively considering for development in the near future. At present, Freenex is working on a new production line for black boxes and GPS navigation devices to take advantage of these products’ expanding markets. The maker is supplying GPS navigation devices with car rear view systems that include cameras, vehicle management systems and lane departure warning systems.

To boost their competitive edge, South Korea suppliers focus on product durability and performance as well as on providing aftersales services. Some makers are capable of making GPS modules in-house, which is an advantage in producing devices that are more stable and can receive GPS signals quicker and more effectively. It can also cut down on production cost.

South Korea has more than 60 manufacturers of GPS navigation devices, but this supplier base is expected to shrink due to competition. About 10 are active players.

	Taiwan-based Supa offers the LBS navigator that displays the destination map and other information based on a phone number.

In mainland China, 3.5in PNDs with 320x240 pixel resolution are priced from $70 to $90, while prices of 4.3in models with 480x272 pixel resolution are from $110 to $135. All prices do not include the cost of maps. Buyers can also ask for map-ready models.

In-car GPS receivers integrated with in-car entertainment devices, such as car DVD players and in-car TVs/monitors, are priced at $300 or more depending on the added functions. These GPS navigators usually have 7in touchscreen TFT LCDs with 800x480 pixel resolution.

Prices quoted by Hong Kong makers are on par with their mainland China counterparts. A 3.5in model from Hong Kong is priced from $72 to $85; 4.3in, about $130; and 7in, from $165 and above. Depending on the order volume, the Bluetooth function adds $10 to $16 to the unit price.

Hong Kong Uranus’ car GPS products can have Samsung CPUs or lower-cost Taiwan solutions, depending on the customer’s price and performance preference. Its GPS modules are SiRFstarIII versions. A three-month test version of map software from TomTom is pre-installed in most of its products.

Freeway’s car GPS products also use Samsung CPUs and SiRFstarIII GPS chips.

In South Korea, the major factors affecting product prices are LCD resolution, Bluetooth and digital broadcasting function, which includes DVB-T and DMB. As in every saturated market, products from known brands cost more. The FOB price of an in-car GPS navigation product from South Korea with a 7in touchscreen LCD, Bluetooth and digital broadcasting is about $180. This figure reflects a 20 percent y-o-y price reduction.

Most Taiwan suppliers put a premium on product quality. Therefore, prices are determined by the quality of the components sourced to manufacture the products. According to the contacted companies, in-car GPS receivers without navigation panels with SiRF IC chips are priced $30 or less per 1,000 units and $20 per 1,000 units for non-SiRF IC chips GPS receivers.

FOB prices of portable GPS devices from Taiwan makers are estimated to decrease by 5 to 10 percent in 2008, according to the interviewed suppliers. PNDs are priced at about $100 to $200 or more, depending on the memory capacity, touchpad function and memory card support.

According to a contacted company, the market price gap between GPS receivers featuring SiRF IC chips and non-SiRF IC chips is about $7 or $8. NCSNavi sources GPS chips from SiRF and MediaTek (MTK). The company noted that more and more of its GPS receivers have MTK chips because of the higher sensitivity of these chips over SiRF’s under a car window film. Other Taiwan GPS suppliers sourcing GPS ICs from SiRF are shifting to u-blox, which offers GPS ICs supporting GPS system and Galileo system with higher performance. Other GPS IC vendors supplying to Taiwan makers are Qualcomm, Broadcom, TI, NemeriX, eRide, CSR, CellGuide, GloNav, u-Nav, Infineon, SiGe Semiconductor, STMicroelectronics and SkyTraq.

For LCD panels, Taiwan makers mainly turn to domestic suppliers such as Chunghwa Picture Tubes, Lightsonic Optoelectronic and AUO, which provide good quality panels at lower costs. Some companies source from Samsung for their high-end models.

	The PM-430 from South Korea’s Freenex is an in-car GPS navigation device with DVB-T receiver and Bluetooth features. It has a 4.3inch touchscreen LCD.

Strong demand from Europe and North America, coupled with advances in mapping software technology, has been the main growth driver for the industry. In the long term, other large potential markets such as India and mainland China will further strengthen this.

Suppliers from mainland China, Hong Kong, Taiwan and South Korea export at least half of their production volume overseas.

Aside from North America and Europe, Asia is another major export market for mainland China manufacturers. Half of Msur’s products are shipped to Europe with 40 percent share of the company’s total export volume, while 25 percent is exported to North America and 20 percent to Asia. Routon exports about 20 percent of its output, with 50 percent shipped to North America, 30 percent to Europe and 10 percent to Asia. Europe is also the main export destination for Shenzhen Risita, which receives 80 percent of the company’s total shipment.

Hong Kong Uranus ships its entire car GPS output overseas. The main destinations are Romania, Australia, the United Kingdom and Mexico. Small-volume shipments are sent to Southeast Asia and the US. Once a map software becomes available, the company also targets to ship to India.

Freeway’s car GPS products are also entirely for export. The US is its main export market, accounting for 30 percent of export volume. Other export markets are the EU and Russia.

South Korea’s Freenex, which releases 10 to 12 new products a year, exports 20 percent of its total output to Europe, the Middle East, the US, mainland China, Singapore and Taiwan.

On average, Taiwan suppliers ship about 70 to 80 percent of their production overseas, mainly to North America and Europe. Developing areas like Russia, and South and Central America are seen as potential markets in the coming years. For in-car GPS receivers, many Taiwan suppliers target OBM sales to gain profit.

About 90 percent of Supa’s products are shipped overseas. In 2007, 40 percent of export shipments were sent to OEM and ODM customers in Europe, 40 percent in America and 10 percent in mainland China. Ten percent of Supa’s products are sold under the in-house GoNav brand in Taiwan.

NCSNavi ships 50 percent of its in-car GPS devices overseas, with about 25 percent sent to Asia and 25 percent to North America, Europe, the Middle East and Africa. About 40 percent of its sales are derived from its OEM business, 40 percent from OBM and 20 percent from ODM.

Export percentage of dmedia System is 86 percent, with shipments sent to operators and distributors in Western Europe, North America and Asia. The company plans to boost its foothold on the North America market in 2008. About 5 percent of dmedia System’s GPS exports are sold through OBM sales, 35 percent through OEM and 60 percent through ODM.

Focusing on GPS navigators and mobile phones, mainland China-based Msur has a 4,000sqm factory in Shenzhen, which is equipped with six production lines. The factory has its own mold-making workshop with all molds designed and produced in-house. Its monthly production capacity for GPS products is 50,000 units with the average monthly output at 20,000 units as of end-2007.

GPS navigator and car DVD player maker Shenzhen Risita operates a 20,000sqm, 1,000-worker factory in Shenzhen. It carries out key production processes in-house, including mold making, plastic injection, silkscreen printing and final assembly. Its production capacity for GPS products is 100,000 units per month with average monthly output at 80,000 units.

Routon, which has been producing PNDs since 2006, has a 24,000sqm, 1,000-worker factory in Wuhan, Hubei province. Its monthly capacity is 100,000 GPS products and average output is 50,000 units. The company plans to set up one more production line in 2008, which is expected to increase its capacity by 50 percent.

Hong Kong Uranus owns a factory in Shenzhen, which has five production lines and 1,000 workers. These lines can be easily converted to in-car GPS assembly and turn out 500,000 units per month if necessary. The supplier produced less than 50,000 in-car GPS products in 2007. Shipments during 2008 are projected to remain at 2007 levels.

Freeway shipped an estimated 30,000 in-car GPS products in 2007. Overall shipments are projected to reach 50,000 units in 2008. The company’s newly constructed 94,000sqm manufacturing complex in Huizhou, Guangdong province began operations in March 2008. It houses 17 automated production lines with a combined annual production capacity of 5 million units.

With the new factory’s higher production efficiency, Freeway expects to significantly lower unit production costs for its in-car GPS and other products. The company adopts a “make-to-order” U-shaped production system popularized by some Japan companies. There are smaller production batches for a variety of models to accommodate small and diversified orders.

Taiwan-based Supa’s product range includes car navigation systems, cradle GPS for PDA/smart phones, Bluetooth GPS receivers and GPS phones. The company’s factory in Shenzhen has a total of 12 assembly lines, including two lines for GPS assembly. Its monthly capacity is 100,000 units. The 10 lines for accessory assembly turn out 2 million units monthly. Supa produced 300,000 to 400,000 PNDs, 16 million accessories and 100,000 Bluetooth GPS receivers in 2007.

NCSNavi’s major product line is PNDs, which represent 30 percent of total sales in 2007. GPS Bluetoothreceivers have 20 percent share of total sales, data loggers with 20 percent, car boxes with 10 percent and other products with 20 percent. NCSNavi has several subcontractor factories in Taiwan, which handle mold making, SMT and final assembly. It produces an average of 20,000 in-car GPS products per month.

dmedia System’s major product lines are PNDs and GPS phones. dmedia System has several EMS subcontractors, including Hon Hai in Taiwan, which conduct mold making, SMT and final assembly. The supplier can provide 200,000 PNDs per month.

South Korea’s Freenex has 20 in-house R&D engineers handling R&D, QC/QA and design processes. The supplier invests 8 percent of total sales in product development initiatives. It takes about three months to develop a new model. In 2008, the company plans to achieve $10 million from its overseas business out of its total sales target of $40 million.

2MTech has its own production line in Gyeongbuk, South Korea with a monthly capacity of 20,000 units. The company releases five or six new products per year. It has 25 R&D engineers. 2MTech is now exporting all its GPS navigation products under OEM contracts. In 2008, the supplier plans to introduce its brand in the world market.