I just finished reading a GigaOm article by Jose Fermoso arguing that the Garmin-Asus nuviphone line is viable as long as the focus remains on navigation. I agree with Fermoso on that point. But while he feels that arguments against the viability of the nuviphone line are valid, I don’t. In fact, I’ll also go against the grain and say the Garmin-Asus partnership is a good thing. Let’s start with the arguments stickin’ it to the handsets.
Arguments against the nuviphone haters
The nuviphone M20 uses Windows Mobile and Windows Mobile sucks: fair enough, I’m not a particularly big fan of WinMo myself. But remember, the M20 is built for business users, many of which are comfortable using Windows Mobile. I’m a big supporter of the Android OS, but is it a viable option for a business smartphone rolling out within months? I don’t think so.
The nuviphone line doesn’t have an open SDK nor will media apps have the visual ‘wow’ the iPhone offers: once again, neither phone is targeted at the app-consuming, media-obsessed crowd. The nuviphone line does one thing well and that is integrate location information into every aspect of the phone, while at the same time providing a real-time navigational experience not available via any other handset on the market. The M20 is particular, being aimed at business users, integrates location in order to boost productivity. Cluttering the phone with applications would defeat the purpose altogether.
Geolocation in mobile phones is old hat already: sure, over half of the new handsets shipped in the United States during the latter half of 2008 featured GPS. In 2009, likely all but the most basic phones will have an embedded GPS chip. But geolocation information integration into every mobile feature is unheard of. It has only been with the release of the 3G iPhone that consumers have started to grow comfortable with GPS and having a device that can pinpoint their location. Now that Google is rolling out location-aware products quite frequently, people will become even more comfortable. That’s when goelocation will move from incomprehensible coordinates to a handy feature that can and will make our lives better.
What are you talking about, the iPhone already has all of this covered: there are a ton of 3rd party-developed navigational applications available for the iPhone. And 99% of them are me-too applications or novelty social networks. Until Apple decides to implement real-time turn-by-turn navigation into the iPhone, it’s not an effective tool for navigation. And as Jose Fermoso points out, the iPhone uses Google Maps, an inadequate mobile competitor to NAVTEQ, the provider of Garmin’s maps. NAVTEQ, aside from being better on mobile, also has more of the world mapped. In terms of the interface, I would argue that the nuviphone’s have a better UI than the iPhone. Less taps and less clutter.
Okay, so there’s what I think of those arguments. Fermoso also points out that following the Garmin-Asus partnership announcement, pundits were blabbering that it was an admission of failure on Garmin’s part and nothing more than a ploy to piggyback on Asus’ Eee PC netbook popularity. Okay, but here’s why it’s a good thing.
Why the Garmin-Asus partnership is a good thing
It allows Garmin to remain dedicated to its core brand: I’m not sure about the viability of portable navigation devices in the long-term. The nuviphone’s are basically Garmin nuvi’s in a handset form factor and that speaks clearly as to what Garmin believes. But the fact remains that if Garmin were to dilute its core brand, the PND, by introducing a mobile phone in a tough economy, disaster could strike. Confusing customers when they are so picky about doling out dollars isn’t a good thing. Garmin’s profit margins are thin enough, even though its products and especially its nuvi line, are the best navigational devices out there. Garmin-Asus co-branding mitigates the brand dilution risk.
Windows Mobile haters will have Android handsets earlier: both Garmin and Asus are Open Handset Alliance members and you can bet both are working on customizing Android for a variety of devices. I don’t know for sure, but I’d surmise that Asus has a leg up on Garmin when it comes to Android development. It’s also funny that the Asus Eee phone will now be released under the Garmin-Asus co-brand. Quite 
possibly there is a tradeoff here. Asus has the Android half, Garmin throws in its navigational smarts.
Asus brings additional distribution channels to the table: Garmin GPS devices are available across the globe for the most part, but they tend to be a lot more popular in the western world, particularly the United States, than anywhere else. Asus has a ton of pull in Asian countries, opening a distribution door for Garmin that would have been previously shut fairly tight.
So there’s my thoughts laid out. What do you think? Will the nuviphone line succeed? Was the Garmin-Asus partnership a good thing or a bad thing? Why? I’d love to hear your thoughts and arguments in the comments!
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