Garmin said industry portable navigation device (PND) sales will fall more rapidly than expected.
PND sales in North America are now expected to drop by 20 percent in 2013.
Only a month ago, Garmin had indicated industry sales falling at a rate closer to 10 to 15 percent this year, but it told analysts on Wednesday, it saw a steeper drop off in Q4 than had been expected.
It appears that industry PND sales are losing some of their seasonality, showing less of a spike in Q4, Garmin said.
When asked if PND sales will eventually shrink to zero, Garmin CEO Cliff Pemble said, “We don’t believe and never have believed it goes to zero. The question is what is the level it stabilizes at…We feel like there’s still utility in the devices into the future.”
Average selling prices for PNDs should drop nominally, Garmin said, noting its own market share in the category has continued to gain and is over 70 percent in the U.S. and 32 percent In Europe.
Garmin also announced Wednesday that its revenue for the full year 2012 declined 2 percent while operating income grew 9 percent. Lower PND sales were partially offset by sales of auto OEM systems and outdoor and fitness products.
Auto sales including PNDs and OEM car audio fell 25 percent in Q4 and 6 percent for the year.
Total net income for quarter declined to $129.3 million down from $165.6 million. Net income for the year however increased to $542.4 million, up from $521 million in 2011.
See the full Garmin financial results here.
Source: Garmin
