bullswin5

1 Comment

    • ON: Tue Apr 15th 15:06 PM
      Commented on:
      Where is Garmin Leading Us?
      The missing info in this article is whether the reduction in inventory is being achieved by improving the efficiency of Garmin's operations, such that the time to build and ship a unit is less, resulting in less need for inventory. All else being equal, reducing inventory is a positive.

      Declining gross margin percentage is not good, but what matters most is how Garmin's gross margin percentage compares to their competitors. There is no doubt that prices have been coming down on portable, automotive market PNDs, serving to drive margins down. But as long as Garmin's costs relative to competitors are low, their competitors will have little ability to wage price war. So before I get too concerned about Garmin's margins, I want to know what the competitors' margins are. And in general terms, Garmin's margins don't look too bad for a consumer product. I would also expect some degree of positive impact on margins (over time) from the ongoing sale of map updates, which is high-margin.
      View article »
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»