Whether or not demand on eBay USA decreased due to the maintained pre-discount prices is unclear. An isolated look at traded new GPS devices correlates to the observed demand for all traded GPS devices. As prices held steady, the decline continued until Black Friday had passed.

Gross sales on eBay USA during these mentioned time periods seem to indicate that ecommerce became preferred venue of trade for GPS devices when economic difficulties hit and Garmin discounted its prices. It is possible this will continue to be the case. As a country with the largest car ownership rates in the world, GPS devices have potential in the retail market for a population that is likely to use them for the purpose of planning more fuel efficient routes. Further more, if the US dollar continues increasing in value, it is possible eBay USA will see a decrease in foreign buyers who find the product relatively more expensive than before.

Until then, online demand and real world demand appear to have been decoupled. As virtual demand decreased during this year’s third quarter, Garmin’s total revenue increased from the third quarter of 2007. Although retail sales are a significant part of its profit margins, this growth also came from an increased share in the aviation and auto sectors.

In the eBay USA market, Garmin has consistently outsold other top brands such as TomTom and Magellan by as much as four times and eight times the amount respectively. Garmin is currently at the head of the pack. When the fourth quarter results are released on the 22nd February, we will discover whether it holds onto its position.

Using Terapeak, an eBay market research tool for eBay sellers, the following analysis was performed for “Playstaion 3″ with a price range between $399 -$5,000 USD. On Saturday Nov 18th, over 10,250 Sony PS3s were sold on eBay at an average price of $1,243 USD. For a 7 day period, between November 16th and November 22nd over 28,500 PS3s were sold on eBay at an average price of $1,276. In comparison, last year a little over $23 million worth of Microsoft Xbox 360s were sold in the week following its launch (November 22nd 2005). In addition, Microsoft Xbox 360s sold at an average price of $718 per console, while Sony PS3s were selling at $1,276 per console; yielding a $558 premium over Xbox 360 consoles.

The following information provides further insight into Sony Playstation 3 activity on eBay in the week following its launch: On November 18th, 2006
1. over 2250 PLAYSTATION 3 consoles sold between 8:00 AM – 10:00 AM PST

November 16th, 2006 through November 22nd 2006
1. Over 35,000 were listed on eBay.com
2. 122 units between $4,999 USD – $6,000 USD

Playstation 3 Consoles – November 18th, 2006
Average Sold Price: $1,243
Total Listings: 12,611
Successful Listings 10,262

Playstation 3 Consoles – November 16th, 2006 through November 22nd 2006
Average Sold Price $1,276
Total Listings 35,521
Successful Listings 28,546

Terapeak Marketplace Research has developed the most advanced research tool, helping eBay sellers learn when to sell, what price to charge and what their competition is doing. With research tools for eBay.com, eBay.de and eBay Motors Parts and Accessories, Terapeak is the international leader in eBay market research. To see more in-depth analysis visit Terapeak for a 2 week free trial www.terapeak.com/signup/freetrial. ###

CONTACT: Denise Hogue
Terapeak Marketing
w. 250.483.3273
www.terapeak.com
dhogue [at] terapeak.com