Last month ABI Research issued a report saying that Personal Navigation Device (PND) manufacturers seem to be “moving away from mass market consumer goods to becoming low volume, high value.” While I take issue with their analysis showing that “nearly one-third of all products offered on the market are above the US$500 mark,” I do think they are onto something.
The fact is, we’re already seeing this trend. Garmin may be stepping up enforcement of their minimum advertised price (MAP) program — I’m not seeing PNDs discounted very much, especially at the high-end. We’re still seeing the upper-end of the Advanced nuvi series selling at their list price on Amazon, a full six months after these units started shipping. Significant discounts are mostly relegated to prior generation units.
It seems like Garmin has realized that they can’t really expand the PND market, and their goal may now be to extract whatever they can from their existing customer base. Doesn’t exactly leave you with the warm fuzzies, huh?
What do you think? Does my speculation ring true?