The most promising portable CE categories include ultra mobile devices (UMDs), handheld games, portable media players, and digital cameras.

Although there are external GPS receivers available for mobile PCs, PDAs, smartphones, digital cameras, handheld games, and other portable CE devices, volumes of these have been limited, and integration of GPS will allow for more widespread use of GPS and will spur much greater GPS chipset shipment volumes.

GPS chipset shipments are expected to grow from 110 million in 2006, to 725 million in 2011. GPS chipset revenues are expected to grow from $520 million in 2006, to more than $1.3 billion in 2011, with the extremely high volumes offsetting the very rapid chipset price erosion.

Volume uptake of cellular handsets will drive the significant majority of this growth. On the cellular handset side, better chipset architecture, combined with greater operator support of location-based services, will help to drive GPS growth in this market.

Qualcomm currently dominates the cellular handset market with its "integrated" GPS solution, while SiRF dominates the personal navigation device space. TI and Broadcom, with their cellular chipset and in-house GPS solutions, promise to be solid competitors in the cellular handset market.

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