Taiwan market: Second-tier PND vendors pushing sales of 5-inch models

Some second-tier PND vendors are offering 5-inch models at prices ranging from NT$2,990-3,990 (US$93.4-124.7), less than half of what brand vendors are quoting for same-size devices, according to distributors in Taiwan.

The move to slash 5-inch model prices came after first-tier vendors began to show price flexibility for the mainstream 4.3-inch models, which were previously quoted at NT$1,990-2,990 and NT$3,990-4,990 by second- and first-tier players, respectively, and their price gap has contracted significantly, the distributors said.

Taiwan's PND market is dominated by Garmin, TomTom and Mio and has little room for second-tier vendors, which are now working with white-box makers in China to introduce products at sharp discounts.

However, the low price tactic also translates to cut in functionality. It is typical for larger size PND to be sold in tandem with value added features including digital TV functions, multimedia playability and the ability to sync up and display images from connected cameras mounted on the car exterior, the distributors indicated, noting that whether consumers will go for just a big screen and very little value added features remains to be seen.

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