China’s Nascent GPS Handset Market Growing Rapidly

China’s GPS phone market grew rapidly in 2007, and GPS phones, along with music and camera phones, are the brightest spots in the nation’s mobile phone market overall, reports In-Stat. A number of major handset manufacturers have entered the GPS phone market, although cautiously and with a limited number of high-end models.

The GPS phone market is still small and has low penetration, but its high growth rate is a clear signal of its development, as is the fact that it is starting to have an impact on the growth of the personal navigation device (PND) market.

A recent report by the high-tech market research firm found the following:

• Shipments of GPS phones will exceed five million in 2009 and will account for about 10 percent of total mobile phone shipments in 2012, compared to 0.6 percent in 2007.

• Handset manufacturers continue to be the most powerful players in the GPS phone value chain. In 2008, more mainstream handset manufacturers have begun GPS phone production, and the number of models available will be at least three times that of those in 2007.

• Many mobile phone chipset manufacturers have begun to integrate GPS functionality into the mobile phone’s main chipset in order to provide a total solution to handset manufacturers and accelerate market penetration of GPS.

Recent In-Stat research, “China’s Global Position on GPS Handsets: The Market is Booming,” covers the Chinese market for GPS handsets. It provides analysis of current and potential customers in China’s GPS phone market, with particular emphasis on patterns of use and consumer concerns. It also presents an overview of the GPS phone value chain, compares the on-line model with the off-line model, introduces major players and analyzes new market trends. It includes analysis of drivers and barriers for the GPS phone market and GPS phone shipment forecasts from 2008 to 2012.

This research is part of In-Stat’s China Wireless Service, which provides an in-depth view of the massive and complex wireless environment in China. It goes beyond simply addressing handsets and wireless applications. The service gives global decision makers insight into market dynamics analysis, turning point analysis, the value chain and business models while providing actionable viewpoints and five-year forecasts.

Additionally, end-user data provides a strong proven input into each report to analyze specific market demand and individual preferences in China. The data comes from an annual survey of approximately 1000 end-users, which provides clients with credible data from valid sampling sizes.