When you're in require of directions, there's no more desirable slogan than a GPS.
But when it comes to mapping away winners and losers in the GPS devices marketplace, we turn to the guidance of our 15,000-member ChangeWave proof network. And what they've told us is that Garmin (GRMN) - the top GPS manufacturer in the sphere - has achieved near complete domination of the U.S. marketplace.
During Feb we conducted two ChangeWave surveys on global positioning systems - one on consumer GPS trends (n = 3,773) and the other on corporate purchasing trends (n = 2,013). Here's what we found:
Consumer GPS Trends
Our February 18-25 survey of consumers who own a GPS semanship device, shows Garmin with a 56% marketplace participation - an accrual of 4 percentage points by reason of the preceding survey in Jan 2008. Garmin's percentage towers over its consequent competitor Magellan, which captured single 12%.
Looking at the later 90 days, Garmin (54%; up 5-pts) remains front on the map in terms of deliberate consumer purchases of GPS guidance devices. TomTom is moment with 8% (down 1-pt), and Magellan has fallen to third dwelling with condign 4% (down 2-pts).
Corporate GPS Trends
In our February 11-15 corporate buying survey, Garmin is besides the commanding baton with a hefty 58% handwriting of the corporate GPS market. That's a comprehensive 11-pts higher than the previous corporate buying survey in Nov 2007.
Magellan extremely gained some corporate ground thanks to the previous survey (12%; up 4-pts), all the more as TomTom's numbers chalk up fallen to 9%, down 3-pts owing to November.
Going forward it's and of the same, as Garmin is dominating planned corporate GPS purchases for the 2nd Quarter with a 56% bazaar ability That's a vast 10-pt dance on account of November.
Magellan takes second with 10% (up 2-pts), while TomTom limps in at 5% (down 7-pts).
Best Quarter in History? Nowadays Wait a Minute.
Garmin's February 20th quarterly emoluments phone has confirmed our ChangeWave survey findings, with the partnership stating apartment lodgings gone that it was the "best quarter in our history."
Garmin reported earnings per hand of $1.39, on sales of else than $1.2 billion - a 99% elaboration from a year earlier, with profits up an impressive 70%. Analysts had projected earnings of dispassionate $1.12 per share. To top it off, the business stated that its prospect for the rest of 2008 remained strong.
So with all that first-class news, you might jar why Garmin's plam fee took a ample 20% hit in the weeks at once succeeding their quarterly earnings announcement. Or why Garmin's stock cost is momentarily down almost 60% from its 52-week high.
According to Wall Street analysts, the combination of significantly lower income margins for Garmin (down amassed than 15%) and a retrenchment in U.S. consumer spending has undermined Garmin's stock price. In addition, Garmin's sample unit selling expenditure dropped precipitously remain quarter, and their CFO recently predicted it testament blop another 20% in 2008.