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Technology Stocks : SiRF Technology Holdings, Inc (SIRF)
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From: tech10112/15/2006 11:24:03 PM
   of 132
 
If Tomtom indeed uses a GPS receiver chip that is inferior to SIRF's in accuracy, sensibility, and reliability in order to save a dollar or two, Tomtom will lose market share quickly to its competitors.

When talking about "saving costs", how much sense does it make for a $400 GPS/PND to save 1 - 3 bucks on the GPS chip.

Besides accuracy and reliability, performance is another crucial factor. It takes much longer - somewhere from 1 minutes to 5 minutes for the inferior GPS receiver chip to locate the "birds" and establish connections in a "cold" start.

In that regards, SIRF is the King, too.

Every vendor needs a "SECOND" source, no matter it is good or bad. Otherwise, you have no bargain power and you're hanging dead in one tree - easy and plain.

That's the significance to Tomtom. That's why it makes no difference to SIRF's fundamental, period.
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