Garmin-Asus nuvifone a Disappointment Admits Garmin
The Garmin-Asus partnership looks to have failed in garnering interest in their nuvifone products as during a fourth quarter earnings presentation stated they are disappointed with the sales of nuvifone reports an article over on Reuters.
The personal navigation market once dominated by Gamin and TomTom has become increasingly crowded by the likes of Nokia and Google entering the turn by turn navigation markets which has basically hurt Garmin, and the navigation maker has warned falling prices along with further competition will hurt margins for 2010.
Apparently Garmin expects priced to fall by 10% which will add pressure to operating and gross margins for 2010. Jonathan Goldberg, an analyst for Deutsche Bank has said that he thinks the PND business decline over time, but not as fast as people expect.
In the fourth quarter Garmin sold 6.6 million units, which was driven by growth in North America and Asia bringing the total amount of units sold during 2009 to 16.6 million, and assuming a growth rate for 2010 of 10% Garmin should sell roughly 18.3 million units.