Phone Turn-by-Turn Navigation Impacts Garmin GPS Sales by 5 to 10 Million Units

I’ve been wondering what kind of effect smartphone free turn-by-turn navigation capabilities are having on traditional GPS driving navigation device firms. Reuters reports on an interiew with Garmin’s CFO that provides some insight.

INTERVIEW-Garmin mulls future of smartphone unit

Traditional PND (Personal Navigation Device) sales are expected to fall 5% per year for a “couple of years”. PND prices have been pushed down for an average selling price of $135 this year and expected to fall slowly in 2011. The “push” is coming from smartphones with turn-by-turn navigation features. Garmin’s CFO estimates that smartphone navigation competition is reducing sales of their GPS devices by 5 to 10 million units in a year from a base of 35 to 40 million units.

Sales of PNDs peaked in 2008. Garmin’s partnership with Asus to product Garmin powered GPS smartphones have not hit a sales level that Garmin considers a market success.