Hasta La Gadget!

Garmin says sales of portable GPS systems, or portable navigation devices (PNDs), will be flat in 2009. In a phone conference with analysts, Gramin president and COO Cliff Pemble described 2009 as a “difficult year,” according to TWICE. Garmin has about half the U.S. market share and dominates even more at the high end, although the market is skewed 85-15 toward lower end PNDs, Garmin says. While flat sales are bad news for PND-makers, it’s good news for customers who’ll see better pricing from makers who remain in the business, as well as great close-out prices from those who drop out. The unspoken problem: A lot of people bought a first GPS 2-4 years ago, upgraded 1-2 years ago, and don’t see the reason to upgrade quite so soon again.

Why it matters: You’ll buy better portable GPS units at lower prices this year, if you’ve still got a job. And flat PND sales and reduced prices adds pressure on automakers to find ways to sell onboard navigation for $1,000 not $1,500.

Automaker navigation could get cheaper with a hybrid navigation unit developed by Harman International for Mercedes-Benz. It’s partly integrated into the car and doesn’t require the automaker to lock in a navigation design three years in advance. Harman made the announcement in a quarterly financial statement that was reported by TWICE. It’s described as a two-piece solution: a cradle-mounted screen with controls plus a hidden processor unit that also includes Bluetooth and music storage. Harman says the device will first appear in eight Mercedes-Benz models in the second half of 2010, mostly likely meaning 2011 models.

IDC Design Corp. has announced a tiny GPS system that can be mounted on a pair of keys, as an electronic breadcrumb trail back to a particular location.

Think of it as a “car finder,” or a “hotel finder,” rather than a “key finder” – although the small device, known as the “ECCO,” attaches to a set of car keys in much the same way. The company is marketing the gadget as an aid for travelers, to electronically mark the location of a hotel or car in a large parking lot, a fishing hole, or other location. The ECCO was launched at the CES show last week, where it was a finalist for one of the the show’s Innovation Awards.