Garmin Needs to Keep Things Simple

"A good strategy for Garmin now would be to take a look at all its SKUs and pick the main five or six with features that most customers want and offer those," he says.

Shares of Garmin were up 42 cents, or 1.2%, to $34.09 in recent trading. The company's stock has fallen more than 45% since the beginning of the year and is trading near its 52-week low.

Last week Garmin missed analysts' estimates for the second quarter and warned for the fiscal year. Revenue for the second quarter grew 23% to $912 million, which was short of Wall Street's estimates of $956.4 million.

For the year, Garmin said it expects EPS, excluding items, of $3.86 on revenue of $3.9 billion. Analysts were looking for earnings of $4 a share on revenue of $4.12 billion.

Analysts fear GPS-based navigation systems are becoming a commodity as consumers have a number of choices, not just among device makers but also among cell-phone service providers such as Verizon(VZ Quote) that offer turn-by-turn directions on the phone for a monthly fee.

Tocqueville Asset Management's McAuliffe says the sentiment on Garmin's stock has been overly negative. "Fundamentally their design is good, and they remain strong in segments such as aviation and marine," he says.