Garmin Asustek Alliance [Shifts]

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Updated! Reuters issued an update to its previous story announcing the end of the Garmin-Asus brand.

Yes, there will be no new Garmin-Asustek smartphones forthcoming from Garmin and Asustek. Asustek will market smartphones under its own brand “from next year,” said Reuters.

But Asustek’s new Android-based phones will use Garmin’s navigation software. So Asustek just drops the co-branding.

Garmin said it will continue to sell and support the smartphones that are already available under Garmin-Asus.

Analysts say Garmin may now be free to pursue selling iPhone and Android apps, like its rival TomTom.

Garmin still hasn’t replied to our inquiry.

Original story: We won’t be seeing new GPS smartphones from the Garmin-Asustek alliance in the future. Asustek Computer said it will end its agreement with Garmin to produce mobile phones, according to Reuters.

Garmin has already indicated it may exit the smartphone market. In September, its CFO Kevin Rauckman told Reuters that nuvifone sales have not met expectations and Garmin will decide over the next six months whether to continue or quit the smartphone business.

Garmin smartphone sales totaled just $27 million in the June quarter. It produces such phones as the Garminfone in alliance with Asustek, as shown above.

“The smartphone market is seeing huge growth, but the Garmin-Asus alliance has, to date, delivered disappointing volumes,” Canalys analyst Tim Shepherd told Reuters. “With its partner keen to go its own way, it seems likely that Garmin will now look to close its own smartphone business as it has indicated it is ready to do.”

Garmin did not immediately respond to our inquiry.

Source: Reuters

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