A report just out from Taiwan’s DigiTimes offers a strong hint that Kansas-based GPS-device king Garmin (GRMN) could be plotting a big move into the mobile phone market. According to Jason Shaad’s writeup in the Kansas City Business Journal, "DigiTimes reported that Garmin may have held discussions with Taiwan-based Compal Communications Inc. to create mobile phones that use Garmin’s GPS software. Compal manufactures mobile phones and other telecommunications equipment." Garmin spokespeople wouldn’t comment on the report, but one analyst thinks it’s a logical move:
"We believe the story is believable," Jeff Evanson, an
analyst with Dougherty & Co. LLC said in a research note. "After
all, why should Garmin concede this segment of the market to the
Motorolas, Nokias and Samsungs of the world?"
On the heels of launching its splashy retail store in Chicago, and its
Super Bowl ad debut, and rosy financial results (the stock is up 26%
over the last year), it stands to reason that trend-setting Garmin
would want to create more than just GPS add-ons to Blackberrys and
smartphones. And conceivably, it could muscle its way into the crowded
mobile market now that Nokia and Samsung have come out with phones with
onboard GPS. But that would have to be one special phone.
Original post by Jeffrey Davis and software by Elliott Back