PREVIEW-Garmin's strong Q3 overshadowed by Google

lunes 2 de noviembre de 2009 17:33 CET
 

* WHAT: Garmin Q3 results

* When: Wednesday, Nov. 4

* Strong results expected with EPS beating estimates

* Google entry seen spurring PND decline

By Savio D'Souza

BANGALORE, Nov 2 (Reuters) - What was otherwise shaping up to be a strong quarter for navigation device maker Garmin (GRMN.O: Cotización) was dampened as its Dutch rival TomTom (TOM2.AS: Cotización) warned of falling selling prices and, more disturbingly, Google (GOOG.O: Cotización) made a high-profile entry into the navigation market.

Google's launch of free software offering real-time, turn-by-turn directions for smartphones last week has shifted the focus away from Garmin's recent show of strength in its PND segment and back to questions of the segment's longer-term sustainability. [ID:nLU565010]

The personal navigation device (PND) market has been hit by a slump in demand followed by a fall in selling prices -- as highlighted by TomTom -- and the advent of smartphones with built-in navigation capabilities.

The navigation market, once a duopoly between Garmin and TomTom, now has to cope with the boom in smartphones with GPS chips, which use satellites to pinpoint the location of a user.   Continuación...