In early 2009 Garmin and ASUS entered a partnership to co-develop the Garmin-ASUS navigation smartphones. And it looks like the collaboration is ending in January 2011 as Garmin has decided to pull out from the mobile phone market.
Update: Official news release to change the current co-brand business model
Garmin and ASUS have maintained a good working relationship since their collaboration to form the Garmin-ASUS brand alliance in 2009, to develop the co-branded navigation smartphones. But it seems like Garmin has decided to pull out from the mobile phone market, which means that the Taiwanese company will be taking back the product line and revert them back to the ASUS brand.
According to news report, the collaboration two years ago took the world by surprise; ASUS being a computer manufacturer partnering Gamin, one of the navigation leaders in the world. Last month, Kevin Rauckman, chief finance officer for Garmin, said that the sales of the Garmin-ASUS nuvifones have not met the company’s expectations and that it is unlikely to get better any time soon. The company may be considering pulling out from the mobile phone market.
If the termination of partnership is official, the product line will be renamed back under the ASUS brand name. Garmin will continue to provide support including the navigation software and its map to the phone manufacturer such that ASUS can carry on to produce the nuvifones. According to ASUS, the company will not stop its smartphone line as it is an important element in the multi-function PCs.