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

Garmin has good brand awareness and is small enough that they don't need to be a major player in the handset business. My belief is that Garmin will vy for the niche logistics, highend recreational and transportation add on markets. The combination could give them 5 to 10 million annual units at an OEM cost of $400. That's a $2 to $4 billion business with greater than 50% GM. They could also pick up another 1 or 2 million units from the broader smartphone market in some select geographic areas. This business doesn't have to compete directly with the Nokias or Apples of the world to be successful to Garmin. What's wrong with high margin niche markets? Nothing.