The Road to Riches
Garmin's GPS systems get drivers, pilots-and investors-where they want to go
There is also the danger that a next-generation mobile device like the Motorola Q or Apple's new iPhone-loaded with Google Maps and a GPS chip-could threaten Garmin in the future. The company has taken a few pre-emptive steps in this direction, signing a licensing agreement to put Garmin's navigation software on the Sprint network and selling a card that slides into the Motorola Q, converting it into a nav unit.
"The big picture is we're surrounded by competition and always have been," says Rauckman. For now, at least, Garmin's hard-earned, in-house expertise, its diverse offerings, and its engineering mojo seem to have given it a head start on its competitors. And the company certainly shows no signs of resting on its laurels. "In the long run," Rauckman says confidently, "the best products and features will win out." If history is any guide, they're likely to be shipped from Kansas City.
Navigating the Product Line
Garmin's high-tech gear serves a variety of uses. Some hot products:
Nuvi 660
What it does: A next-generation navigation device that clips onto the dashboard of a car, the $899 Nuvi has a wide, ultrabright screen that features colored maps of every road in North America, complete with spoken-word directions. Its Bluetooth wireless technology allows drivers to make hands-free mobile phone calls, and a built-in MP3 player with FM transmitter lets users play digital music through a car stereo. The Nuvi's most original feature is a traffic monitor that receives real-time traffic alerts, then adjusts the route accordingly.
What it means for Garmin: Unveiled in the fall, the Nuvi adds to Garmin's red-hot auto-navigation product line. While it takes auto manufacturers at least 18 months to roll out a new vehicle, Garmin designed the Nuvi in a fraction of that time-which means it features more cutting-edge technology than a factory-installed unit. It's also cheaper: Nav units tend to add more than $1,500 to the cost of a vehicle. Sales of Garmin's auto-navigation products are growing at over 140 percent a year.
Zumo 550
What it does: With many of the same features as the Nuvi, the Zumo ($999) is the first GPS device made specifically for motorcycles. Its sturdy design is water- and fuel-resistant, and it features left-handed buttons (so riders don't have to take their right hand off the throttle) and a touch-screen that works even with gloves. The Zumo's Bluetooth technology allows riders to hear road directions-and listen to its MP3 player-wirelessly inside their helmets.
What it means for Garmin: Launched in October, the Zumo is one of the most recent examples of Garmin expanding its product line into new markets. Motorcyclists are a gadget-hungry bunch, and the combination of GPS technology with an MP3 player and route-sharing software has made the Zumo hugely popular.
Forerunner 305
What it does: A personal training wristwatch designed to be worn while walking or jogging, the Forerunner wirelessly monitors heart rate, speed, distance, pace, and calories burned-while also providing sensitive GPS technology that tracks a user's every move, even on a tree-covered trail. The $349 Forerunner comes with software that allows users to create their own workouts and set speed goals at various points along their runs. Afterward, performance data can be downloaded onto a PC and overlaid onto a Google Earth map of the route.
What it means for Garmin: Garmin's new Forerunner-the latest in its long line of personal training devices-certainly isn't alone in the sports gadgetry market. Nike and Apple introduced a sport kit last summer that also tracks a runner's speed, distance, heart rate, and calories burned-for only $29 (plus the cost of an iPod and a pair of Nike shoes). Still, the Forerunner seems to be keeping pace. It may not have an MP3 player yet, but the Nike-Apple entry doesn't have GPS. The race is on to see which company comes out with the missing link first.
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