The Global Positioning System – or GPS – has taken the world by storm. What was once a proprietary item used only by the government, is now in demand by retail consumers worldwide. Those who have become used to GPS rely upon its accurate directional services; and the word continues to spread. A Magellan GPS is one of the more popular brands of GPS.

GPS utilizes the government’s network of 24 satellites that consistently circle the earth, providing timely and accurate logistical information. It was designed in the late 1970’s by the United States Department of Defense to be used as a reliable navigational tool for the military. But today, GPS has become mainstream, finding its way to consumers through a variety of convenient systems. GPS receivers are hand-held units that literally fit into the palm of your hand. This portable system has the ability to connect to the Global Positioning Satellites which, through a series of calculations based on longitude and latitude can instantly and accurately pinpoint the user’s location. The screen of the GPS receiver illustrates a map of the area, including roads, terrain, and landmarks, and places the user’s location relative to these points of reference. Travelers and outdoor enthusiasts who take to the mountains every weekend have found the GPS receivers to be invaluable in providing accurate navigation and ensuring safety.

Magellan GPS, a brand of GPS receivers, is one of the more popular systems on the market today. While some users prefer to use the Magellan GPS as a hand-held device, others use it as a permanent navigational device that is mounted in their vehicles. In this role, the Magellan GPS uses a destination address supplied by the driver to efficiently navigate the driving route. Further, if your vehicle becomes the victim of theft, it can be effectively tracked by the signals sent by the Magellan GPS.

In other cases, parents use the Magellan GPS as a tracking device to monitor their teenage drivers. The system will ensure that fledgling drivers are not left disoriented in unfamiliar territory and can alert parents to any suspicious activity.

The Magellan GPS, because of its increasing popularity, can be purchased in most retail outlets. Prices vary depending on number of features offered in each system. There is also comprehensive information provided online detailing the different Magellan GPS systems, including features, price, and user experiences. Take the time to research any GPS before you purchase to ensure that it meets your needs with regard to the manner in which you will use the system, frequency of use, and budgetary guidelines.

There are many brands of portable GPS receivers that people use, however Magellan GPS is one of the better known ones. Most people install GPS systems in their automobiles to assist with directions, monitor what their teenage kids are doing, or track their car in the event of a theft.

Some other reasons that people carry these portable GPS units would be to take hiking or hunting to prevent them from losing their directions. Regardless of the reason that you wish to utilize a Magellan GPS, you should do your research prior to shopping around for one that is at the right price with the right features.

Initial Considerations

Before you buy you a GPS system decide what features you need. Is it more significant to you that it be light or rugged? Is battery longevity a consideration? Is there a manufacturers guarantee in regards to the hardware itself? Additionally, the majority of GPS systems will require periodic software updates.

In other words, you will need to install updated maps onto your GPS receiver periodically. Also, the same as with any type of software, it will require some minor patches at times. Regardless of where you purchase it, learn about the type of tech support the dealers give you, and do a comparison for the prices when it comes to any monthly monitoring prior to making your choice.

Shopping in a Retail Outlet

The majority of stores, particularly outdoor and automotive stores have Magellan GPS systems in stock. If you have a store discount card or some other method of getting a better price, making your purchase this way may be the best method. Particularly when the holidays are near, you may find exceptional discounts in prices. Discounts on GPS prices can range from as little as $100 to as high as $1000. Keep in mind that you should use promotions that allow for a certain percentage discount instead of a set amount off for large ticket products.

On the Net

Shopping on the Internet has become very convenient nowadays, and you’ll be able to easily see all the options and accessories that are available with a Magellan GPS system. However, you have to, of course be mindful when shopping on the Internet; you only want to go to sites that have a good reputation.

Sites that are reputable will have a phone number and physical address, a secure server for transactions with a credit card and will have decent reviews on sites like epinions.com. It is not wise to use a site until you have read positive reviews regarding it.

Magellan’s company website would be the first place to look into. The home page has a list of current promotions. Regardless if you decide not to purchase a Magellan GPS from the manufacturer, you can get some good ideas in regards to the range of products available, the prices, and how often you will be required to update the software by going back to the site.

When you’re in need of directions, there’s no better device than a GPS.

But when it comes to mapping out winners and losers in the GPS devices marketplace, we turn to the guidance of our 15,000-member ChangeWave research network. And what they’ve told us is that Garmin (GRMN) – the top GPS manufacturer in the world – has achieved near total domination of the U.S. marketplace.

During February we conducted two ChangeWave surveys on global positioning systems – one on consumer GPS trends (n = 3,773) and the other on corporate purchasing trends (n = 2,013). Here’s what we found:

Consumer GPS Trends

Our February 18-25 survey of consumers who own a GPS navigation device, shows Garmin with a 56% market share – an increase of 4 percentage points since the previous survey in January 2008. Garmin’s percentage towers over its closest rival Magellan, which captured only 12%.

Looking at the next 90 days, Garmin (54%; up 5-pts) remains first on the map in terms of planned consumer purchases of GPS navigation devices. TomTom is second with 8% (down 1-pt), and Magellan has fallen to third place with just 4% (down 2-pts).

Corporate GPS Trends

In our February 11-15 corporate buying survey, Garmin is also the dominant leader with a hefty 58% share of the corporate GPS market. That’s a full 11-pts higher than the previous corporate buying survey in November 2007.

Magellan also gained some corporate ground since the previous survey (12%; up 4-pts), even as TomTom’s numbers have fallen to 9%, down 3-pts since November.

Going forward it’s more of the same, as Garmin is dominating planned corporate GPS purchases for the 2nd Quarter with a 56% market share That’s a huge 10-pt jump since November.

Magellan takes second with 10% (up 2-pts), while TomTom limps in at 5% (down 7-pts).

Best Quarter in History? Now Wait a Minute.

Garmin’s February 20th quarterly earnings call has confirmed our ChangeWave survey findings, with the company stating flat out that it was the “best quarter in our history.”

Garmin reported earnings per share of $1.39, on sales of more than $1.2 billion – a 99% increase from a year earlier, with profits up an impressive 70%. Analysts had projected earnings of just $1.12 per share. To top it off, the company stated that its outlook for the rest of 2008 remained strong.

So with all that good news, you might wonder why Garmin’s share price took a big 20% hit in the weeks immediately following their quarterly earnings announcement. Or why Garmin’s stock price is now down nearly 60% from its 52-week high.

According to Wall Street analysts, the combination of significantly lower profit margins for Garmin (down more than 15%) and a retrenchment in U.S. consumer spending has undermined Garmin’s stock price. In addition, Garmin’s average unit selling price dropped precipitously last quarter, and their CFO recently predicted it will drop another 20% in 2008.

Another factor is the continued slowdown in U.S. consumer spending. Our February survey found an astonishing two-in-five U.S. respondents (39%) saying they’ll spend less over the next 90 days than they did a year ago – 5-pts worse than our January 2008 survey.

The decline in spending is occurring across all income levels. But most ominously – not only for Garmin but for the entire GPS devices industry – the survey showed consumer electronics spending in the midst of a major slowdown.

To put this in perspective, it’s the weakest outlook for electronics spending ever recorded in a ChangeWave survey.

Given such a slowdown, it’s understandable why Garmin and so many other high flying electronics stocks have had an extremely rough go of it lately. But despite shrinking profit margins and an extremely tough consumer spending environment, our latest ChangeWave surveys show Garmin is gobbling up share in the high growth GPS market.

The verdict is out on whether Garmin can return to its previously lofty heights – but it’s a company investors should be watching closely.