Garmin Needs Rerouting

November 3, 2010 by · 2 Comments
Filed under: Business, Finances, Technology 

Imagine you are a leader in your market and you have been dealing with your competition day in and day out, extremely successfully by having arguably the best product in your category.  Then, all of the sudden, a disruption occurs that makes your product obsolete.  If you still hold Garmin shares (NASDAQ:GRMN), well, I’m sorry.  They are not coming back up, ’cause that’s exactly what happened to Personal Navigation Devices (PND), where Garmin was a dominant player.  Smartphones with integrated GPS made them obsolete.

Now, to their credit, they tried to remain relevant by launching 2 phones, one of them even running Android.  But as they reported today in their 3Q results call, they’ll be “winding down” that business.  I can’t blame them.  Trying to compete with Apple, RIM, Motorola, LG, Samsung, Nokia, and all those multimillion brands that spend millions on each smartphone is tough.  The question is what’s left for Garmin to hang their hat on?

At roughly $6B US in market cap and still making $130M in earnings last quarter you’d think there is hope.  Focusing on their fitness, aviation, and marine business, which grew last quarter, seems reasonable, but I doubt they can sustain a $6B market cap that way.  So, my fellow reader (singular) there might still be room to short, but not a lot.  They may be an acquisition target for their technology, but it is a gamble.  So exit your position, whatever it is and be glad it didn’t go any worse.



It is not about the gadget

May 5, 2009 by · Comments Off on It is not about the gadget
Filed under: Technology 


Reading through my June 2009 Bicycling magazine – which I typically do cover to cover, ads and all – the article from the editor Loren Mooney caught my eye.  The author does a great piece on how keeping logs has changed and the the amount of data available for the casual rider thanks to multiple cool gadgets in the market.  Technology combined with biking, what can go wrong?  I then ventured to find my first logs too. Although I will not reveal the content, I found out that keeping a log by hand did not work for me not only because I was not too good, but because I was – actually still am – lazy too.  However, towards the end of 2008 I snatched the Garmin Forerunner 305® on a huge sell that couldn’t resist.  Given my definition of good weather, I have been able to try it out a couple of times only and I now realize this is the only real way to create a log.

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