CSR bullish on the GPS market

John Scarisbrick
John Scarisbrick
John Scarisbrick, CEO at CSR, a worldwide leading supplier of Bluetooth chipsets, gave to its shareholders a bright view about the future of the company in the GPS market, especially for GPS-enabled mobile phones, in a financial conference call held yesterday. Mr. Scarisbrick believes the company can achieve a place of market leader in mobile phone location technology within three years. He also thinks that by 2012 the GPS attach rate in mobile phone could be as big as what it is today with Bluetooth, meaning 45 to 50%.

CSR bought two companies earlier this year in the field of location technologies: NordNav Technologies and Cambridge Positioning Systems (CPS) for US$81.2 million (including a first performance related payment of $7.9 million). NordNav specialized in software GPS while CPS has developed “Extended GPS” an assisted GPS that use the speed of the signal between GSM towers and handsets to calculate a position.

CSR is currently working on integrating these technologies into its Bluetooth chipsets. This GPS will be “software only” and its announced cost below US$1. “The development of CSR’s software-based high performance GPS (Global Positioning System) on a Bluetooth chip is on schedule with the successful completion of the first pre-determined technical milestones in the quarter ended 29 June 2007 and product launch still on track for 2008”, said yesterday’s financial press release.

If this product is on schedule with a quality approaching hardware-based GPS solutions, then CSR could seize an important market share since the company has already strong connections with the leading handset manufacturers. The PND market is also eyed by CSR which supplies TomTom (TomTom One XL for example) and Garmin.

Thursday, July 26th 2007

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