China GPS Industry

An Expert's View about Satellite Communications in China

Posted on: 6 Apr 2010

China’s GPS export industry is anticipating strong growth in 2010 as major economies start to recover from the global financial crunch. In fact, many suppliers expect significant sales increase in 2010 as the market for mobile location positioning expand seven to developing countries.


Recent enhancements in software and hardware technologies have helped propel growth in the line further. Upgrades in user interface, wireless connectivity and functional convergence are among the key areas for R&D.


In addition, the descending cost of GPS chipsets, which contribute a large share to a unit’s price, gives makers a larger profit leeway. For buyers, this translates to possible quote reductions in the months ahead.


China suppliers continue to cater tothe low-end and midrange segments to avoid competing with leading overseas companies such as Garmin and TomTom.


The following are some of the keytrends we see in China’s GPS industry:

• More models, especially in vehicle units, will feature multimedia capability. A number of portable devices now support JPEG, BMP, GIFand PNG files, and integrate FM stereos and games. A few designs enable mobile TV, mainly through DVB-T.

• The EU and North America will be the most important export markets for GPS makers but some will explore the Middle East and Asia to ramp up sales further.

• Since many GPS devices use similar chipsets and modules, China manufacturers are working on aesthetics to increase differentiation. Specifically, car and portable units in slimmer and rugged constructions, and accessories featuring colorful housings are in the pipeline.

• Amid the potential threat from the rising supply of GPS-enabled mobile phones, companies in China are advancing the navigation capability of their releases. A number of portable units support traffic message channel or TMC, geofencing, assisted-GPS and location-based services or LBS.

• Export prices will be in a downward trend as the cost of GPS chipsets continues to decline. Generally, makers will cut quotes by 5 to 10 percent in the next six months.



The above is extracted from the Executive Summary of China Sourcing Report: GPS


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Posted: 06 April 2010