PND market further squeezed by Windows Mobile free navigation Tweet

Portable navigation device (PND) makers are about to see an even harsher market for their devices, with Microsoft's recent update of its Bing Maps application for Windows Mobile to provide free turn-by-turn GPS navigation services.

Earlier this year, both Nokia and Google have introduced similar features for handsets as well.

PND shipments have stalled recently. Garmin reported a 15% revenue decline in the first quarter for its mobile and car-use device division, and confirmed that inventory level at its distributors is high. The European PND market shrunk by 16% in the first quarter, TomTom pointed out.

PND sales in 2010 are expected to stay flat, according to industry observers.

The free navigation applications have also impacted paid navigation services from carriers and third-party software developers, according to sources in Taiwan-based smartphone makers.

The future lies in LBS (location-based service) social networks and advertisements, sources said. When GPS navigation becomes a standard function on handsets, consumers will likely want to know where their friends are and be more receptive to advertisements of businesses nearby.

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