Garmin: Android-Based Nuvifone Coming in 2010
A lot of people, including me, wonder about Garmin’s strategy for the Nuvifone. Why not create an app for the various popular platforms already out there – it’s not like it doesn’t already have the software expertise. Furthermore, if the company is going to insist on producing its own Garmin-branded handset, why use a proprietary OS when there are already established platforms out there, like, say, Android? Hold the … wait for it … phone – sorry, just had to say it – Garmin said during its recent quarterly earnings announcement that it was going to do just that.
Props where props are due: the Associated Press first reported that Cliff Pemble, Garmin’s chief cook and bottle washer chief operating officer stated during a conference call with financial analysts Nov. 4 that the company planned to expand the Nuvifone line in 2010, including adding an Android-based model. Outside of the news services in bloggy land it was GSM Arena that first noted this Android tidbit of news on Nov. 9; it is ensconced in a presentation Garmin released in conjunction with its quarterly earnings release.
It was the GSM Arena item that caused the ripple effect as many others reported the Garmin Android news, including lil’ ole’ GPS Maniac. Unfortunately there are no other details. Given the noise around the launch of Motorola’s Droid on Verizon Wireless – the first Android 2.0 phone – coupled with the launch of Google Maps Navigation, though, it is certainly timely news.
I don’t think that timing was necessarily planned though, as some others have suggested; Garmin clearly wasn’t making any sort of big statement with this. Rather, this was part of a typical broad overview given to financial analysts about the near-term future plans of the company – common practice during earnings conference calls. Furthermore, there is no mention in the company’s press release that accompanied its earnings con call and in the Powerpoint/PDF presentation, it’s mentioned briefly on page 10. I imagine next year, however, if Android continues to gain traction, Garmin will make some hoopla over the release of its Android handset.
So, will this be enough to make up for the relatively lackluster debut of the long-awaited Nuvifone? Pemble himself acknowledged that initial sales of the devices have been “relatively slow,” according to the AP report. Only time will tell. But speaking of timing, it will be interesting to see how soon Garmin brings an Android Nuvifone to market.
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Space Machine's PND-428A
Garmin just couldn’t stand it. It’s competition, TomTom, makes an App for the iPhone. So, Garmin has to one up it and come out with a phone with it’s own mobile app. I really don’t see the long range health of this device as being healthy. Garmin needs to consider if expansion in to the mobile business is a growth platform or not.
Garmin needs to stop thinking about new platforms to grow and instead apply itself to making their GPS business healthy. They need to stop “dumping” product on the street at insanely low margins through big box outlets and look at it’s long term pricing structure. Garmin is dumping so much “recertified” product on to the streets that they are cannibalizing sales of new units. Which do they make more margin on? Remember, we are in a recession and the consumer is highly price driven now.
Garmin, stick to what brought you to the dance to begin with? Think about your long term pricing strategy too as GPS units are becoming commodity priced. There was once some profit in this business for the “little” guys. As far as the Nuvifone goes, I don’t see it as a big profit contributor, or maybe I should wait until the “recertified” units come out to see.
2010? That means 2011 in Garmin’s linguo.
Heh, yeah, one can only hope that Garmin can get this one out the door a little quicker than the first Nuvifone. As I’m sure it and partner Asus found out, squeezing GPS onboard a phone’s circuit board along with the cell radio and Bluetooth and whatnot isn’t as easy it might seem at first; there are a lot of technical and engineering issues to deal with. Maybe now with the first phone under their belts, and not having to sweat the OS, maybe its software and hardware engineers will have an easier time of it.