Consumers homing in on global positioning

PDAs with built-in GPS have been soaring in popularity, but businesses are not joining the rush

PDAs with Global Positioning Systems (GPS) built in achieved record sales in July, accounting for 28 per cent of the total UK PDA market, according to analyst firm GfK.

GfK attributed most of the growth to the sharp fall in price of PDAs containing GPS technology. The average price in July was £256, compared with £323 at the start of the year.

Sandra Koehnen, account manager IT at GfK, said: “The main reason for the price decline is competition between PDA manufacturers offering devices with navigation technology. The market for PDAs with built-in GPS is dominated by two brands that together account for 78 per cent of the total PDA market.”

Koehnen said GfK anticipated that demand for PDAs with GPS will remain high for the rest of 2005, as prices fall further.

“The majority of PDA sales with built-in GPS come through retail chains such as Tesco, John Lewis and Argos, and consumer electronic stores such as Currys and Dixons. These channels account for 59 per cent and 30 per cent unit share respectively. However, in overall PDA sales, the IT channel is strongest, highlighting consumer interest and the lack of business demand for GPS,” Koehnen said.

Pierre Lams, head of marketing at reseller Handheld PCs, said: “The consumer sector has picked up on GPS, rather than the business sector, because internal IT departments don’t have methods of supporting the technology and therefore are not buying the products. But prices are low, and consumers are buying the technology through commercial outlets.

“We are helping firms come to terms with supporting PDAs with GPS. In time, the business market for them will take off.”