Portable GPS: R&D underscores expanded connectivity

	The PA02-5002 model from YF is a GPRS-connected PND equipped with Bluetooth, Wi-Fi and 3G communication modules.

Models with Bluetooth, Wi-Fi, GPRS and 3G modules lead next-generation devices.

Connected GPS units are showing the potential to become the key products of China suppliers.

The forecast popularity comes amid growing international demand for devices equipped with a range of connectivity options, enabling an interactive information platform. Berg Insight projects that by 2015, about 88 percent of personal navigation devices will support these extra functions.

Shipments of connected GPS models to Western Europe are expected to reach 4.6 million units by 2014, according to iSuppli. Last year, the area received 388,000.

Current versions come only with GPRS or 3G modules and are offered by less than 10 percent of the industry’s makers.

Upcoming products, on the other hand, utilize Wi-Fi, Bluetooth, digital broadcasts and GSM networks. They can obtain realtime data for traffic, stocks, weather and information on nearby establishments.

Built-in communication modules increase manufacturing costs by $50, while a Bluetooth equivalent adds $2. Units with the latter currently account for 20 to 30 percent of supply.

	Digi-in’s G528 model has a 5in touchscreen LCD and handwriting recognition. It also has an FM transmitter and Bluetooth capability.

The anticipated demand for connected GPS units comes amid market saturation for traditional models, about 40 million of which are made each year. In fact, this line is projected to experience significant reductions by 2012.

Another factor is the growing popularity of in-dash car navigation systems and GPS-equipped mobile phones.

Shipments of the second product type rose 92 percent to 150 million units in 2009. A CAGR of 39 percent is anticipated in coming years. Further, Berg Insight estimates sales will reach $770 million by 2014, mainly because of solid smartphone demand and plans to incorporate GPS capability in midrange handsets.

At YF International Ltd, one of China’s major manufacturers of portable GPS models, output has stayed flat in the past 12 months. Other companies have experienced changes of less than 10 percent in the same time period. In general, growth of only 5 percent is expected in 2010.

The debt crisis in Europe is another challenge faced by suppliers in the industry. As the area is among the most significant overseas destinations for the line, alternative markets such as South America and Southeast Asia are being explored.

In response to strong competition, small and midsize makers plan to adopt new GPS solutions that increase efficiency.

Suppliers in China offer a range of portable GPS units. Navigation capability, touchscreen TFT LCDs, USB and Bluetooth connectivity, and memory card and e-book reader functionality are typical.

Most models support playback of audio formats such as MP3, WMA and PCM. Video types, including AF, WMV, AVI and DivX, are compatible as well. Advanced versions usually incorporate FM radio, DVB-T, ISDB-T, Wi-Fi or GPRS modules, and A/V-in. As portable GPS are commonly shipped without navigation maps, these are provided by customers.

Onboard memory, on the other hand, has been on the upswing as companies switch to more advanced chipsets. The SiRF Atlas IV variant, for example, supports 16GB. It is currently the most-popular solution for portable GPS units. Some suppliers, however, are installing the Atlas V type that consumes 10 percent less power and integrates certain peripheral components to reduce total material costs.

YF is said to be the first China-based operation to use the latter part.

Displays come in 3.5, 4.3, 4.8, 5, 6 and 7in sizes. The second dominates output, as demand for the smallest variant is expected to continue decreasing. Shipments of the larger types are projected to grow in coming months.

Prices were on a downward trend in 2009. Models that went for $50 in 1H09, for example, were at $40 in the succeeding half-year. Makers expect stable quotes the rest of this year as they cannot afford further downward adjustments.

Low-end models range from $35 to $55. These perform only basic navigation and may have a built-in clock. Screen size is 3.5 or 4.3in.

Midrange products are generally between $56 and $100, and utilize 4.8, 5 and 6in displays. Aside from navigation, music and video playback, and connectivity, they support 2 to 8GB memory expansion, and A/V-in, handsfree and phone book functionality.

Units in the high-end category go for $101 and above. Adding to the standard features of less-expensive releases, these boast DVB-T, Wi-Fi, 3G and TMC module options.

Further, portable GPS makers such as Shenzhen Topband Co. Ltd offer vehicle-optimized models, including preinstalled and aftermarket variants.

China-sourced GPS modules are adopted in various devices, including portable GPS models, trackers and in-dash navigation systems.

Some products combine GPS modules and controlling processors. Stand-alone chips are from SiRF, u-blox, MediaTek or Leadtek. The other component is typically made by Samsung.

A number of releases utilize SOCs, with the navigation and control parts combined by upstream solution providers. This method is used in 90 percent of products. The Centrality Atlas processor is widely employed.

China is home to about 30 suppliers of GPS modules. Most are based in Guangdong province and the Yangtze River Delta region. Both areas boast a mature electronics industry and a full chain of peripherals specialists. Makers of mobile phones, GPS trackers and PCs are also located there.

Jiaxing Jiali Electronics Co. Ltd and Levave are among the major providers. The first company ships about 100,000 modules and manufactures 1 million GPS antennas each month. Combining key parts from one enterprise can result in improved product performance.

Specialists generally offer standard and custom models. Both go to domestic makers of portable GPS units, mobile phones and car navigation systems. Some suppliers also provide antennas, and GSM and GPRS components.

Most GPS modules are based on SiRF chipsets. The SiRFstarIII variant is currently mainstream. As the SiRFstarIV type yields better sensitivity and positioning speed without increasing costs, it is projected to achieve dominance in coming years.

Jiaxing Jiali, for example, will be shifting to the SiRFstarIV model in 2H10. The company attaches a unique bar code to each GPS module and antenna to facilitate tracking for quality purposes.

Prices are usually between $7 and $9. To ensure supply stability, makers typically cultivate ties with chipset specialists.

Parts can alternatively be purchased from many international providers such as u-blox, Leadtek, Broadcom and MediaTek.

SMD solutions for mobile phones, and GPS modules for personal navigation devices, trackers, AVLs and other navigation products are available from Taiwan.

The second component type is optimized for personal security and sports, fleet management and asset tracking. Suppliers also offer versions for military, marine and aviation applications such as unmanned aerial vehicles. Select models from GlobalTop Technology Inc., for example, have a 10Hz per second update rate for quick movement.

GPS ICs are the key parts for this line. The major providers are SiRF, u-blox, Trimble, Atmel and MediaTek. The current R&D trends are for compact dimensions, low power consumption, high sensitivity and value-added features.

Plug-and-play capability is another target.

Further, Taiwan companies are improving reliability, with products capable of operating at -50 to 100 C. All aspects of design and manufacturing, including RLC and PCB creation, can be done in-house.

Many of the latest releases adopt reduced-size GPS modules that have an integrated or embedded ceramic patch antenna intended for SMD application in small personal electronics. Often referred to as Patch on Top systems, these utilize the SmartAntenna structure.

Navisys Technology Corp. offers the GC-268 model, a slim GPS module with a VGA camera component.

In addition, a number of companies have design capability for RF and wireless antennas, allowing reduced noise while boosting performance stability. DGPS and A-GPS are often supported as well.

Software and firmware capability are considered by many manufacturers as essential for strengthening competitiveness.