The new analysis company Frost & Sullivan, the Russian inclination of consumers to pay for integrated navigation services, LBS-services and other functions, it is reported that in the emerging market of navigation and telematics services in Russia there is a change of the trends: technology smartphone with an embedded Global Positioning System GPS is gaining position, replacing the traditional portable navigators. In 2009, sales in the market navigation services based on smart phones reached 350 000 units, while the market for portable navigators had been unable to reach even half that amount.
In 2008, sales in the Russian market navigation products amounted to 450 000 units and it is quite possible that it could reach 2 million units in 2012. With the exponential growth in the market of GPS navigation services on the basis of sustained economic growth of smartphones and portable navigation market, and these changes occurred.
The experts of the company Frost & Sullivan believes that 35% of Russian consumers are interested in the built-in web browser, smartphone, while 63% are willing to pay more than € 4 a month for a service vehicle tracking with GPS built-in smartphone.
Eight out of ten owners of navigation systems in Russia are planning to buy another navigation system in the next six months. Of these, 49% still prefer a laptop browser, but more than 30% is already going to go to the navigation system based smartphones. Russian consumers are willing to pay over 100 euro for the navigation solution based on the smartphone. Given the current economic downturn, it could become an impressive low-cost alternative.
The economic crisis has had a significant negative impact on consumer habits to spend money in Russia. Although the Russian consumers and argue that they are inclined to spend over 300 euro for the purchase of the Navigator, but not the fact that they do in the sight of these economic conditions.
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