Garmin to Review Smartphone Business within 6 Months

Garmin CFO Kevin Rauckman
Garmin CFO Kevin Rauckman
In an interview with Reuters last week, Garmin CFO Kevin Rauckman not surprisingly said that their smartphone product line has so far missed its target.

Indeed, during the second quarter earnings call, early August, Garmin’s CEO Min Kao revealed that “sales of our smartphone product category contributed $27M in revenue during the quarter.”

What is however interesting is that Rauckman stated the following:

"We're pragmatic, if we end up ultimately not successful with units ... we'll have to sit back and evaluate that and consider making the best decision for our business."

"We'll have to make decisions within the next couple of quarters - whether we continue to invest or whether we pull back," he said to Reuters.

With all major phone makers shifting their ambitions to the higher end of the market, there is unfortunately little room left for Garmin and its “navigation phone”.

If this hardware strategy finally fails and that Garmin pull the plug on the Nuvifone, it will have to be seen if and how the company is willing to play a “software” card.

Tuesday, September 14th 2010

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