The GPS navigation device maker and its Taiwan-based hardware partner Asustek are ending a joint phone-making venture in January, according to a report in DigiTimes Monday.
Garmin wasn't immediately available for comment.
Garmin and Asus made the Garminfone for Deutsche Telekom's (DT) T-Mobile, hoping the marriage of portable navigation devices and phones would give Garmin a new growth market. But sales of the Garminfone have been weak.Last month, Garmin CFO Kevin Rauckman warned that disappointing sales had caused the company to consider ending its phone effort. The company said phone sales in the second quarter totaled $27 million, which were below expectations. Garmin's story highlights the difficulties of competing in the smartphone market where giants like Apple (AAPL), Google (GOOG), Research In Motion (RIMM) and Nokia (NOK) already offer navigation services on phones. Asus, a major computer and notebook manufacturer, is expected refocus its mobile effort back on its own smartphones, according to the DigiTimes report. --Written by Scott Moritz in New York.
>To contact this writer, click here: Scott Moritz, or email: email@example.com. To follow Scott on Twitter, go to http://twitter.com/TheStreet_Tech. >To send a tip, email: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV