Wholesale price of GPS handsets expected to fall under $200 by 2010



Wholesale price of GPS handsets expected to fall under $200 by 2010
Analyst firm ABI Research today said wholesale Average Selling Price of GPS-enabled handsets will fall under $200 by 2010 from a price range of $250 to $500 presently. Indeed, today most handsets with integrated GPS are smartphones or high-end feature phones. However, chipset manufacturers now have solutions in place that will permit the integration of GPS in handsets at lower costs, and provide significant improvements in terms of accuracy, time-to-first-fix, and reception in indoor environments. “Recent industry developments, such as the announcement by CSR and Samsung of lower costs for GPS modules for mobile devices, will ensure that prices for GPS-enabled handsets quickly come down,” says ABI Research industry analyst Shailendra Pandey. “Further, in coming years, it will become more cost-effective for manufacturers to have GPS in a large proportion of devices, rather than offering it in fewer handsets; this will enable lower ASPs for devices as well.”

ABI Research industry analyst Shailendra Pandey
ABI Research industry analyst Shailendra Pandey
ABI Research industry analyst Shailendra Pandey
ABI Research industry analyst Shailendra Pandey
“Until now, GPS chipset solutions for handsets have been costly ($5 to $10 per handset)”, said the research note. “However, GPS chipset vendors such as CSR and SiRF have developed solutions that will bring down the cost of integrating GPS in handsets to under $2. Other vendors, including Broadcom, have plans to integrate GPS with Bluetooth and to offer a single-chip solution. Current GPS-enabled handsets typically are CDMA devices, but these solutions will also allow the integration of GPS in GSM and WCDMA handsets at much lower costs”.

Thursday, February 7th 2008


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