3 Reasons to Sell Garmin Today

 

Interesting article today about Garmin.

By Dave Mock
October 16, 2008

"Competition: While many believe GPS smartphones from makers like Apple (Nasdaq: AAPL) and Research In Motion (Nasdaq: RIMM) don't stack up to Garmin's offerings, many still contend that these competitive pressures pack significant punch. Consider that 85 million GPS-enabled smartphones are expected to be sold this year, roughly eight times the number of in-car and portable navigation devices. And Garmin delayed its own GPS-enabled Nuvifone which was set to answer other devices from Nokia (NYSE: NOK), Motorola (NYSE: MOT), and Palm (Nasdaq: PALM).

Slowing Financials: Although Garmin posted a 23% rise in sales for its second quarter, its marine division sales dropped 11% and overall gross margins fell 470 basis points. Without the Nuviphone this year, the company has factored out this revenue and lowered its guidance for 2008 sales and earnings. And some only expect the negative trends to continue.

Weaker Product Pricing: PND prices fell by about 25% in the first half of this year and some expect further drops. And with the Nuvifone releasing in a crowded smart phone market in 2009, pricing pressure is expected from new products like Deutsche Telekom's (NYSE: DT) T-Mobile G1 phone. With inventory levels high, and pricing cuts continuing, some just want to throw the stock away.

Of course, Garmin has faced serious threats before and overcome them in the past. But the question today is whether or not the company can do so again -- and reward investors. That's why CAPS is such a great resource to augment your own analysis."

--
Nuvi 2460LMT
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It runs about $120 a year to have GPS Navigation on my Voyager!

I have had a LG Voyager for over a year and it has the GPS Navigator built in but it is very weak in comparison to my Garmin 760 as far as navigation goes. I could not imagine trying to use it for navigation while driving a car. To me from the phones I have seen to date navigation is a pretty good item for occasional or emergency use. One of my daughters has the new iPhone and the other has the new BlackBerry Storm and neither of them are any better for GPS navigation then my Voyager is.

People talk about having to pay to update maps once in a while as a downside to the present GPS units but if you want to use the GPS feature on my phone I have a choice of nearly $120 every year or $2.99 a day. I can update my maps every couple of years for $60 while during that same period the phone navigation feature would run me $240.

The phones are going to have to start offering free GPS Navigation if they are ever going to replace stand alone GPS units.

From what I have seen of the new NuviPhone on the net from Garmin and others that have had their hands on it the NuviPhone is the closest thing I have seen that would maybe tempt me depending on the carrier service available and any additional costs for service.

--
Garmin Drive Smart 55 - Samsung Note 10 Smartphone with Google Maps & HERE Apps

In dash pop out nav

DJKM wrote:

I still think the in-dash Navi will be in most, if not all, vehicles just like electric windows, power locks, automatic transmission, CD player (tape player, FM radio, Aux. plug), etc.

I agree. Up until now I though I was the one who said it first, but maybe not?

The perfect in dash system would have a screen which pops out as a portable hand held unit with a USB port, that also locks down tight when left in the dashboard.

The Lexus in dash navigation is a much better system than my Nuvi 265WT, but the inability to add POI files is a major disadvantage.

--
Nuvi 265WT & Edge 705

I tried both

I tried my daughter's cell phone. I could hardly see the map. I gave it up and stayed with my Nuvi 660. But she's fine with her cell. Perhaps, my eyesight is getting tired and needs retirement or need new glasses.

laugh out loud

Cell Phone Nav vs. SP

I use my cell phone nav in an emergency when I'm in some other vehicle and didn't grab my 2720.

Much prefer the louder 2720.

--
SteetPilot 2720

have to agree with rjrsw

I have to agree with rjrsw that,
I would not pay for what is supposed to be FREE GPS service. Period!

.

abin wrote:

I have to agree with rjrsw that,
I would not pay for what is supposed to be FREE GPS service. Period!

And yet you paid at least $100 to own a Garmin. Hmmm......

Gps/Pda Phones...

rs97ap wrote:

I love PDA/phones but I would not trade my GPS unit for something built-in in a phone. It's just not the same smile

Right there, Besides, with the new laws coming out regarding cellphone use while driving. I wouldn't chance a ticket just to look at very small print, let alone my life.

that is very interesting...

GadgetGuy2008 wrote:
abin wrote:

I have to agree with rjrsw that,
I would not pay for what is supposed to be FREE GPS service. Period!

And yet you paid at least $100 to own a Garmin. Hmmm......

Yes. Actually, I paid more than $300 for nuvi 670.
The theory is I know that is the maximum I paid to keep it working. It is interesting that it may not be the most cost-effective way to own it, but, I feel I am paying for the GPSr, the device, and believe the GPS signal should be free.

new software

I can't imagine paying for gps service on a cell or smart phone especially when Garmin mobile xt is out there and you only pay for it once. And it works great on my smart phone.

--
Flip Garmin Street P.330 Garmin 255WT Garmin LM50

removable

I don't like the idea of a removable screen, that would allow for easy thief, which is probably one of the only things I don't like about my Garmin now. I see the connivence of it coming out, but I think the thief issue outweighs the connivence of it.

I believe that technology will have some method of easy upgrades and POI installs. Bluetooth and WiFi would work now. Just think about it, the new systems receive a lot of current info, gas prices, traffic, movie times. Why not updates and POI's?

The future is coming, and it sure is exciting.

Deborah

Don't be fooled

FLIP wrote:

I can't imagine paying for gps service on a cell or smart phone especially when Garmin mobile xt is out there and you only pay for it once. And it works great on my smart phone.

Be careful, make sure your carrier doesn't charge for data downloading. if they do GPS service can be very expensive, charged my the MB.

--
Using Android Based GPS.The above post and my sig reflects my own opinions, expressed for the purpose of informing or inspiring, not commanding. Naturally, you are free to reject or embrace whatever you read.

no foolin

Nope no data charges I check believe me with a couple teenagers I watch the minutes and the cell bill details. I have had the Garmin Mobile XT going for about 2 years now without a hitch. ATT service by the way.. if that makes a difference.

--
Flip Garmin Street P.330 Garmin 255WT Garmin LM50

You are so right

rs97ap wrote:

I love PDA/phones but I would not trade my GPS unit for something built-in in a phone. It's just not the same smile

Yep, I love my Blackberry, and thought I would like the Navigator on it. No way. At the end of the trial period, I dropped the subscription. Paying $10/mo for it is not reasonable.

I have enjoyed my Nuvi 880. However, I do think that they will keep after one device doing it all. I still don't think I'd buy one though. I tried the DVD built into the TV and that is what I remember when someone touts an all-in-one device....except for the HP printer/scanner/copier/fax, which is a different sort of animal, of course.

--
"Making tracks..." {:)-<=| Nuvi 880

Blackberry & Garmin

babago wrote:

Yep, I love my Blackberry, and thought I would like the Navigator on it. No way. At the end of the trial period, I dropped the subscription. Paying $10/mo for it is not reasonable.

I installed the nuvi maps on my Blackberry. For $100 it has lifetime updates. I like them, would probably not use it for major use, but it has come in handy. I don't carry my Zumo 550 with me 24/7 but I do have my phone. If I need to find a place I use the BB. (Blackberry) Lucky for me my BB can hook into my trucks radio and I can have the volume. Or I can look at the route ahead of time and get to know how to get there. It comes in handy, and if you are going to keep your phone for a long period of time (2yr contract) it is sure cheaper than paying $9.95 a month. But for main use driving I also recommend that you get a GPS. The screen on the BB is too small to concentrate on while driving. Did I mention free updates? mrgreen

--
Rodney.. oditius.htc@gmail.com BMW Zumo 550 HTC Touch Pro - Garmin XT

Screen sizes

Does anybody find it odd that in almost every piece of video gear, the screen size is getting larger like plasma/LCD tv's and computer monitors and yet in cell phones, there is a big push to get content on them, while the marketing machine convinces the public that they want to watch tv and view maps, etc. on a 1.5" screen?

I've said for a long time, I don't really want anything on my blackberry other than the typical smart phone uses. I'm not going to view maps, watch tv, or surf the web on a screen that small when I can wait until I get home and do it on a screen at least 10x larger.

--
Nuvi 2597 / Nuvi 2595 / Nuvi 680 / Nuvi 650 "Good judgment comes from experience and experience comes from bad judgment."

I agree--GPSrs still rule

wegasque wrote:

Does anybody find it odd that in almost every piece of video gear, the screen size is getting larger like plasma/LCD tv's and computer monitors and yet in cell phones, there is a big push to get content on them, while the marketing machine convinces the public that they want to watch tv and view maps, etc. on a 1.5" screen?
...

I agree wholeheartedly. In other threads here there are passionate discussions about what features folks would like to see on their GPSrs, and the threads regarding what features the makers have "taken out" (folks can't even agree if having the upcoming cross street name in the "green bar" on a Nuvi is a worthwhile thing or not) are even more contentious. So how are phones going to provide that same level of functionality? And even if they were able to cram all that info onto the 3" screen of a phone, who could read it while traveling at 65 mph?

I have an Instinct (iPhone wannbe) which has one of the larger screens for a phone, and I happily take my 200W--which is still small enough to put in my pocket--every time I go out the door.

One last thing I have found phone based GPS systems haven't been able to duplicate yet: From POI-Factory, I currently have 600,000+ POIs downloaded and simultaneously stored on my 2Gb SD card. What phone based system offers the ability to quickly search around for "offbeat tourist attractions" or the like?

--
NEOhioGuy - Garmin 2639, MIO Knight Rider, TomTom (in Subaru Legacy), Nuvi 55, DriveSmart 51, Apple CarPlay maps

I agree...

rs97ap wrote:

I love PDA/phones but I would not trade my GPS unit for something built-in in a phone. It's just not the same smile

I agree...

I suspect there's a good

I suspect there's a good enough market for both. The larger screen on the Nuvi, better accuracy, and ability to keep it plugged in for charging (not sucking down the cell battery) make it superior in my mind. That being said, having the Cell phone GPS is nice too as a backup, if I'm not in my car, or if I'm walking someplace or just want to play with a route to determine distance.

Both Cells and Garmins have

Both Cells and Garmins have their place. I have both and I don't always have my Garmin with me so the cell is nice for that. But I wouldn't consider using the cell and trying to drive a car with it. Unless the wife was holding it......uh....no on second thought...

Garmin-Asus Introduces nüvifone™ M20

Info at this site:
http://tinyurl.com/ad8wf6

--
NickJr Nuvi 3597LMT

I been following this thread

I been following this thread for a while There is all this talk about how smartphones that have gps means the death the PND. So by that logic there should be no more digtal cameras most phones have them now. Those people such as myself who really rely on gps are most likey going to want a pnd and those just occsionaly use ther gps on phone prob would not have bought a stand alone anyway.. Alot people don't understand how cell phone gps works and when the go on a long trip and lose coverage no gps and i'm sure after the first time that happens they will buy a pnd. In 10 years or so cellphone will also have a sat. reciver and i will go with what works best for untill that happens the pnd will still be around.

Actually!

cd, many phones now have 5 megapixel cameras in them and they are cutting into the point and shoot camera market. The new Tom Tom app for iPhone when combined with their car kit which includes it's own GPS recieiver making the iPhone independent of the confines of cell reception make it a real PND. As this combo gets refined I think Garmin will have to come up with it's own version of an iPhone app. If Garmin were smart they would start that right now and dump the Nuviphone idea b/c that is a company killer.
I wish I had a dollar for everytime I heard about the next "iPhone killer" and if the rumors that Apple intends to end it's exclusivity agreement with AT&T early next year are true they could see a 40% market share as they have in Europe where the agreements have expired. Pretty tough ask for Garmin to be introducing a new phone in that market.

IMHO

there is nothn like a dedicated item. yes we live in a world where multi function items are the ish. but to have a dedicated thing that does it job superbly... i think id take that. anyone can get an iphone and it may get you where u need to go but id say it will lack the experience of havn a gps as a gps.

--
A pedestrian is someone who thought there were a couple of gallons left in the tank.

3 Reasons to Sell Garmin Today - BS!

I strongly agrre with kch50428. The origanal post fails to share that the cell phone providers charge a fee th use the GPS function. If you want ALL the Bells and Whistles you have to pay. With Garmin, you pay for upgraded maps...Not for usage!

All-in-one always sound cool but if you ever have the all-in-one

printer then you know it bad in a way.

All in ones are ok as long

All in ones are ok as long as they work. Something goes bad and you have lost everything.

Not the iPhone

AT&T does not charge a monthly fee for the iPhone built in GPS and both the Navigigon and Tom Tom apps for the iPhone have no monthly fees.

Just what this world needs......

more people using their cell phones for other things. As it is right now they pull out in front of other people, because they talking , not paying attention. So now lets give them another reason not to pay attention, try looking at a tiny screen while your driving in Chicago or 75 mph down the interstate. Believe me most people have enough trouble driving without any distraction, let alone looking at a little TV screen

--
2597 Sometimes I wonder..."Why is that Frisbee getting bigger?"...and then, it hits me.

yep

thefastbird wrote:

more people using their cell phones for other things. As it is right now they pull out in front of other people, because they talking , not paying attention. So now lets give them another reason not to pay attention, try looking at a tiny screen while your driving in Chicago or 75 mph down the interstate. Believe me most people have enough trouble driving without any distraction, let alone looking at a little TV screen

I agree it's only getting worse. There's nothing like going from 75-0 just because someone was texting on the expressway, and looking in your rearview mirror and seeing a tractor trailer with smoke from the tires and swerving onto the shoulder. And it's really messed up when this happens every other year or so it seems to you individually. And to think that most wont use bluetooth because of their hair or they don't like something on their head. No kidding.

Confused!

What is the difference between the screen on the iPhone when being used as a GPS and the screen on a Garmin, and lets be honest how many actually pull over and stop when when searching for a POI etc on your GPS. At present an iPhone cannot run multiple apps at the same time (excepr for phone and iPod functions) ie if you switch to the text messaging screen you lose your GPS and if you try and watch a video you would be dependedent on only TTS for guidance. The iPod function on my Alpine stereo bars you from watching video while connected anyway so not a problem.

Actually!

mourton wrote:

cd, many phones now have 5 megapixel cameras in them and they are cutting into the point and shoot camera market. The new Tom Tom app for iPhone when combined with their car kit which includes it's own GPS recieiver making the iPhone independent of the confines of cell reception make it a real PND. As this combo gets refined I think Garmin will have to come up with it's own version of an iPhone app. If Garmin were smart they would start that right now and dump the Nuviphone idea b/c that is a company killer.
I wish I had a dollar for everytime I heard about the next "iPhone killer" and if the rumors that Apple intends to end it's exclusivity agreement with AT&T early next year are true they could see a 40% market share as they have in Europe where the agreements have expired. Pretty tough ask for Garmin to be introducing a new phone in that market.

even with 5 megapixel i still see digtal camera selling well as far as the tomtom car kits if they work and work well and not like tv sat like direct tv everytime it's rains you lose the signal than maybe the pnd well be dead I just wat gps to be gps gloable

Cost alone

With the GPS air time free and Cell phone air time costing why would anyone consider using a phone?

--
Mary, Nuvi 2450, Garmin Viago, Honda Navigation, Nuvi 750 (gave to son)

in case

In case cell phone dies, I still have GPS to guide me home. Simple enough.

That's a very good point.

mgarledge wrote:

With the GPS air time free and Cell phone air time costing why would anyone consider using a phone?

ONE AWSOME USE OF GARMIN

THE ZUMO 660 IS WATER PROOF. HOOKS UP TO MY MOTORCYCLE,CAR,HAND,MOUNTAINBIKE. PHONE DIALS TO MY BLUETOOTH HEADSET.(CARDO)MY WIFE AND I TOOK A TRIP 2 THE COAST IT WAS GETTING LATE ON MY BMW 1150 ROCKSTER AT A SPEED OF 60MPH MY GARMIN FOUND THE NEXT HOTEL UP THE ROAD 8MILES AWAY. ONE PUSH OF THE GLOVE FRIENDLY TOUCHSCREEN AND I WAS CALLING 2 MAKE RESERVATIONS. WHEN SHE ASKED FOR MY CREDIT CARD # I SAID LET ME GET OFF MY BIKE AND COME THRU THE DOOR. WHEN I RIDE MY MNTBIKE IN THE WOODS I DONT LEAVE BREADCRUMBS ANYMORE EITHER. BUT MY BIGGEST KICK IS SLOWING DOWN TO WAVE TO LAW OFFICIALS. CELL PHONES SUCK!

Not one that wants a handheld device that does it all for them

dagarmin wrote:

...only in the sense that some and maybe a growing number of people now want one handheld device that does it all for them: phone calls, Internet access, basic camera, mp3 player, and GPS. And if GPS built-in to cars continues to get cheaper and filters down to become standard equipment, that's also a threat to Garmin's current business model. But I agree with kch that built-in units and do-it-all portable phones don't do GPS nearly as well as Garmin standalones, and I'd still much rather have the Garmin, even with an extra gadget and extra wires and mounts to worry about.

If I want a camera I buy a camera not a 3Mega pixel camera Phone.
If I want a MP3 player I get one, I don't use my cell phone as one.
If I want a GPSr I buy one that I can move between cars, not the overly priced built in's that are restrictive to one car.
If I want a Hand held GPS I buy one, not one designed for a car..

So Kch is correct, for now anyway the market place is a crowed one and the nuvi phone will probably fail. and that I would imagine that is why you don't already see one on the market today, and Garmin knows it.

--
Using Android Based GPS.The above post and my sig reflects my own opinions, expressed for the purpose of informing or inspiring, not commanding. Naturally, you are free to reject or embrace whatever you read.

Cell phone GPS will not make

Cell phone GPS will not make other GPS units sell less. Especially when companies like RIM who don't have any program with maps that are saved on a memory card and relies on DATA. Also some people like to talk/text while driving. If their phones are being used as a GPS such features would be hard...

.

dood wrote:
kch50428 wrote:

As someone who is in the cell phone biz...

If all you've ever experienced was navigation on a cell phone, you'd think that was way cool. But if you've ever had a Nuvi, or TomTom - navigation on a cell phone in primitive by comparison.

I'm a gadget junkie - and am of the belief that the gadgets that try to be the jack of all trades are the master of none.

As far as I'm concerned, Garmin has nothing to worry about.

I couldnt have stated it better myself.

I'd also like to toss in an additional point..

Phones vs Standalone Garmin Devices?
Two words:
SCREEN SIZE

'Nuff said.. grin

So you want to go back to using those bricks you saw people using when cell phones first came out?

hmm.. i was thinking about this too

right after i plunked down a few benjamins on a 755, news came out that sprint was going to release the HTC Hero android phone

here - http://www.androidguys.com/2009/09/03/and-now-its-official-s...

with the hero coming out oct11, i was seriously wondering if getting a dedicated GPS is the smartest move

but.. after working with the 755, i'd say yeah.. there's a place for garmin

see, garmin goes above and beyond what a gps-enabled cell ph can do

i'm very impressed w/ this generation of dash-mounted gps units

garmin has to be innovative and relevant - they face competition, for sure - but that just ups the ante

i believe in 'em!

--
Garmin nuvi 755t

?

SDscorch wrote:

right after i plunked down a few benjamins on a 755, news came out that sprint was going to release the HTC Hero android phone

here - http://www.androidguys.com/2009/09/03/and-now-its-official-s...

with the hero coming out oct11, i was seriously wondering if getting a dedicated GPS is the smartest move

but.. after working with the 755, i'd say yeah.. there's a place for garmin

see, garmin goes above and beyond what a gps-enabled cell ph can do

i'm very impressed w/ this generation of dash-mounted gps units

garmin has to be innovative and relevant - they face competition, for sure - but that just ups the ante

i believe in 'em!

Looks like no one is going to give up their GPSr.
The theory of replacing GPSr with cell phone is a question mark.

ugh

im tempted to sell mine simply cus i have no car.. geez if anyone here living in the dc area knows someone selling a decently priced car PLEASE let me know

--
A pedestrian is someone who thought there were a couple of gallons left in the tank.

From the hardware end,

From the hardware end, convergence of technologies seems like a done deal but there's a number of factors as already mentioned that might put a dent in it for the broader market in the foreseeable future (5-10 years? 3 years?).

I was wondering though if the software end might promote the trajectory of portable GPS. TomTom has introduced an open source project to foster the integration of data to enhance functionality. (And if I understand correctly, it may have the ability to add information on the fly.)

OpenLR:

http://ostatic.com/blog/tomtom-launches-open-source-navigati...

http://www.tomtom.com/page/openLR

Garmin Value

The far larger danger to Garmin is when their products no longer satisfy. There have been a few comments about certain feature disappearing from newer Garmin versions (i.e. cross street names, etc). If current owners of Garmins start looking around for features not available on a Garmin, ...

As long as Garmin GPS's remain reliable, provide useful navigation info, & are reasonable in cost, they'll do well.

Fred

BIG screen

I like the 4.3 in screen. those cell phones dont have that.

--
Jerry...Jacksonville,Fl Nüvi1450,Nuvi650,Nuvi 2495 and Mapsource.

well put. I agree completely

kch50428 wrote:

As someone who is in the cell phone biz...

If all you've ever experienced was navigation on a cell phone, you'd think that was way cool. But if you've ever had a Nuvi, or TomTom - navigation on a cell phone in primitive by comparison.

I'm a gadget junkie - and am of the belief that the gadgets that try to be the jack of all trades are the master of none.

As far as I'm concerned, Garmin has nothing to worry about.

I agree completely. Garmin has nothing to worry about.

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