Garmin's Nuvifone: Why I Don't Expect It to Gain Much Traction

Julien Blin submits:

Mobile LBS has become a common feature and a must have on many handsets. PND makers like Garmin (GRMN) are in a difficult situation and face fierce competition from handset vendors, which is one of the reasons why Garmin has built the Nuvifone, its first GPS-centric smartphone. The problem is that Garmin has been postponing the launch of this device for months; they had to meet carriers’ technical requirements. It still expects to release its Nuvifone in 2H09 in Europe and in 4Q in North America. The Nuvifone went on sale last month in Taiwan.

The Nuvifone does not really have a real differentiator. In fact, I don't expect the Nuvifone to gain much traction. It will just be one of the many touchscreen smartphones with LBS capabilities out there. I doubt the Nuvifone can become a threat to the iPhone 3G S, the Pre, and others.

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