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.

Enjoy.

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Blackberry running out of juice?

June 18, 2009 by · Leave a Comment
Filed under: Technology 

Blackberry 957

Research in Motion, responsible for those of us “thumb-typing” all day long and undoubtedly king of the smart phone market announced quarterly results today. Impressive!! They beat analyst estimates again. Yet, the stock traded at some point after hours almost 10% below yesterday’s close (it has then recovered all but the last 2% or so). Is the Blackberry is running out of juice (I hate puns!) at last?

People buy things because of the things these things do (whaaat?). Applications are what sell devices, not the devices themselves. Sure a sexier iPhone will sell better than an ugly one but first and foremost you have to want to do what the iPhone does before you consider it.

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Why did I buy a TomTom?

March 28, 2009 by · Leave a Comment
Filed under: Technology 

With PNDs (aka GPS) being launched all over we all want to have one, and I was no exception.  My wife and I were planning a trip to Alaska where we will be driving a lot. After weeks of comparative shopping, a couple of trials we ended up buying the TomTom Go-920.  TomTom, Garmin, Magellan, Sony, Nokia, and others have systems on the market.  Even some new cellphones have GPS functionality.
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