New Tech May Lower GPS Prices

We’ve written previously about the soaring popularity of GPS navigation systems, which proved to be a very popular gift this past holiday season. Still, the technology remains somewhat pricey when installed in new cars, and the cost has yet to fall to a point where it could be considered a standard item.

A partnership between wireless provider CSR and Samsung may change all that, though. The collaboration between the two companies will aim to introduce a new embedded module that will put GPS systems more widely in cell phones and media players, while supposedly cutting the cost of the technology in half.

Samsung has found a new software supplier that will make producing its GPS modules — the tiny things that do the actual tracking — much cheaper. Manufacturers can then take advantage of the lowered cost and offer a drastic price reduction in a market that has already proved to be popular with consumers.

The big question is: How much of that lowered manufacturing cost will actually trickle down to the buyer? Portable navigation systems have plummeted in price recently — would it be in the interest of these companies to broaden the market even further? GPS-enabled handsets are expected to do over $50 billion in worldwide revenue this year, and could hit $100 billion by 2012 if the customer base grows.

New Embedded GPS Modules for Mobile Devices to Slash Costs (Gizmag.com)