The profit margin for GPS CHIP SET makers has already been so low leaving very little to be squeezed.
Today, in a $500 GPS device, you can find a $15 SirfStarIII chip and $70 NVT map, while Garmin/TomTom keeping about $250 profit.
When every electronic device manufacturer has learnt to make GPS, the GPS price will go down dramatically, but the units sales may increase 50 folds from today's several millions units to hundred millions.
We will find a $10 SIRFStarIII chip and $15 NVT map in a GPS device that costs $30 in every cellphone, PDA, notebook, digital camera, sporting gear, watch, ....... in several years. SIRF may become the Intel for PCs by then.
When Garmin was approaching 60, SIRF did not benefit from it, but went to toilet under 20. I am sure when a NUVI 350 with an incredible price tag of $800 to $100, SIRF will be 100 in my opinion.
As long as there is no meaniningful competition for the SirfStarIII, SIRF is a safe bet for your money. |
