Free-Reprint Article Written by: Jim Woods and Paul Carton See Terms of Reprint Below.
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And what they've told us is that Garmin (GRMN) - the top GPS manufacturer in the world - has achieved near total domination of the U.S. marketplace. Additional Article Information: =============================== 663 Words; formatted to 65 Characters per Line Distribution Date and Time: 2008-05-06 11:00:00 Written By: Jim Woods and Paul Carton Copyright: 2008 Contact Email: mailto:[EMAIL PROTECTED] For more free-reprint articles by Jim Woods and Paul Carton, please visit: http://www.thePhantomWriters.com/recent/author/jim-woods-and-paul-carton.html ============================================= Special Notice For Publishers and Webmasters: ============================================= If you use this article on your website or in your ezine, We Want To Know About It. Use the following URL to let us know where you have used this article, and we will include a link to your website on thePhantomWriters.com: http://thephantomwriters.com/notify.php?id=5993&p=load HTML Copy-and-Paste and TEXT Copy-and-Paste Versions Of Article Are Available at: http://thePhantomWriters.com/free_content/db/w/garmin-dominates.shtml#get_code --------------------------------------------------------------------- Garmin Dominates US Market for GPS Devices - But Stock Still Takes a Big Hit Copyright (c) 2008 Jim Woods and Paul Carton ChangeWave http://www.changewave.com When youre in need of directions, theres no better device than a GPS. But when it comes to mapping out winners and losers in the GPS devices marketplace, we turn to the guidance of our 15,000-member ChangeWave research network. And what theyve told us is that Garmin (GRMN) - the top GPS manufacturer in the world - has achieved near total domination of the U.S. marketplace. During February 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). Heres what we found: Consumer GPS Trends Our February 18-25 survey of consumers who own a GPS navigation device, shows Garmin with a 56% market share - an increase of 4 percentage points since the previous survey in January 2008. Garmins percentage towers over its closest rival Magellan, which captured only 12%. Looking at the next 90 days, Garmin (54%; up 5-pts) remains first on the map in terms of planned consumer purchases of GPS navigation devices. TomTom is second with 8% (down 1-pt), and Magellan has fallen to third place with just 4% (down 2-pts). Corporate GPS Trends In our February 11-15 corporate buying survey, Garmin is also the dominant leader with a hefty 58% share of the corporate GPS market. Thats a full 11-pts higher than the previous corporate buying survey in November 2007. Magellan also gained some corporate ground since the previous survey (12%; up 4-pts), even as TomToms numbers have fallen to 9%, down 3-pts since November. Going forward its more of the same, as Garmin is dominating planned corporate GPS purchases for the 2nd Quarter with a 56% market share Thats a huge 10-pt jump since November. Magellan takes second with 10% (up 2-pts), while TomTom limps in at 5% (down 7-pts). Best Quarter in History? Now Wait a Minute. Garmins February 20th quarterly earnings call has confirmed our ChangeWave survey findings, with the company stating flat out that it was the best quarter in our history. Garmin reported earnings per share of $1.39, on sales of more than $1.2 billion - a 99% increase from a year earlier, with profits up an impressive 70%. Analysts had projected earnings of just $1.12 per share. To top it off, the company stated that its outlook for the rest of 2008 remained strong. So with all that good news, you might wonder why Garmins share price took a big 20% hit in the weeks immediately following their quarterly earnings announcement. Or why Garmins stock price is now down nearly 60% from its 52-week high. According to Wall Street analysts, the combination of significantly lower profit margins for Garmin (down more than 15%) and a retrenchment in U.S. consumer spending has undermined Garmins stock price. In addition, Garmin's average unit selling price dropped precipitously last quarter, and their CFO recently predicted it will drop another 20% in 2008. Another factor is the continued slowdown in U.S. consumer spending. Our February survey found an astonishing two-in-five U.S. respondents (39%) saying theyll spend less over the next 90 days than they did a year ago - 5-pts worse than our January 2008 survey. The decline in spending is occurring across all income levels. But most ominously - not only for Garmin but for the entire GPS devices industry - the survey showed consumer electronics spending in the midst of a major slowdown. To put this in perspective, its the weakest outlook for electronics spending ever recorded in a ChangeWave survey. Given such a slowdown, its understandable why Garmin and so many other high flying electronics stocks have had an extremely rough go of it lately. But despite shrinking profit margins and an extremely tough consumer spending environment, our latest ChangeWave surveys show Garmin is gobbling up share in the high growth GPS market. The verdict is out on whether Garmin can return to its previously lofty heights - but its a company investors should be watching closely. --------------------------------------------------------------------- The ChangeWave expert research network is composed of 15,000 highly qualified professionals. Members are surveyed weekly on a range of topics, and ChangeWave converts the findings into proprietary reports. For more ChangeWave GPS findings, go to http://www.changewave.com/gps. To receive ChangeWave technology alerts, go to http://investorplace.com/order/?pc=9PR708 --- END ARTICLE --- Get HTML or TEXT Copy-and-Paste Versions Of This Article at: http://thePhantomWriters.com/free_content/db/w/garmin-dominates.shtml#get_code ..................................... 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