GPS-based navigation devices are set to sizzle on Black Friday as device makers have cut prices to under $100 for the product that ranks high on many consumers’ wish lists.
TomTom is currently offering its ONE 125 GPS model for $100 till Nov. 30, after which it will go up to $130. The TomTom ONE 125 comes without maps of Canada but offers voice instructions.
Rival Garmin will have its nuvi 200 product available for $97 at Wal-Mart on Black Friday only, says Dealnews, which has been tracking the prices. The nuvi 200 is listed currently at the suggested retail price of $200 on Garmin’s website.
GPS devices, a hot ticket item last year, seem to be still popular with buyers. Three of the top ten products on Amazon.com’s electronics best seller list are navigation systems. TomTom’s ONE 125 ranks sixth.
Another sweet deal from a smaller brand is the Nextar P3 for $70 and free shipping, says Dealnews.
GPS makers are hoping the attractive prices will draw in customers. More than 50% of the total GPS devices sold during the year are in the fourth quarter, says Ralf Hug, vice president of product management for Airbiquity, which makes wireless transport products.
"Retailers are worried about not getting enough people into the stores," says Hug. "Maybe PND (personal navigation devices) product category could be that lead into the store."
Last year, GPS devices saw one of the most aggressive price discounts in electronics as retailers used the category as a "loss leader", or a draw to get shoppers to loosen their purse strings.
This year most personal navigation products lack differentiation, which could make it more difficult for the companies that are competing to get attention, says Hug. "There’s been a lack of innovation over the last two years," he says. "Everyone’s delivered a me-too type of product."
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