ConsumerScope Finding the Way

An early survey on telematics finds consumers in search of the right product

By Sean Wargo

Senior Industry Analyst

Consumer Electronics Association

The king of mobile electronics sales is the in-dash CD player—at least in terms of volume anyway. But in this age of rapid commoditization, the early lifecycle products are where the margin is made. Looming on the edge of that space now is the next round of industry hopefuls—satellite radio, mobile video, in-car networks and telematics.

The Consumer Electronics Association took a look at the emerging telematics category, with a consumer survey in fourth quarter 2001, and found some encouraging news, mixed in with some challenges. For the purposes of the survey, CEA defined telematics as any vehicle navigation and information system; this includes in-car global positioning devices and those providing driving directions.