Asustek, Garmin Launch Joint Brand in GPS Phone Market

Taipei, Feb. 5, 2009 (CENS)--Asustek Computer Inc., a world-caliber vendor of notebook PCs, and Garmin Corp., a globally leading GPS (global positioning system) device supplier, have decided to launch a joint brand "Garmin-Asus" to venture into the market for GPS phones, according to company sources.

Johnny Shih, chairman of Asustek, and Min Kao, co-founder of Garmin, jointly announced formation of the alliance between the two world-caliber firms. Such a co-branding strategy has aroused intense attention from telecom companies all around the world, like AT & T, the largest in the U.S., which has actively moved to introduce Garmin-Asus-branded GPS phones into the country.

Accordingly, although determined to debut their first LBS (location-based service)-based GPS phone in Mobile World Congress 2009, scheduled to open on February 16 in Barcelona, Spain, Asustek and Garmin have yet to establish any joint-venture firm; instead, the two firms set up a team, with Shih and Kao as members, to take charge of business operations of the new brand at the moment. However, Shih said, the two firms are also likely to set up a joint venture in the near future.

Shih stressed that Asustek is the only handset maker in Taiwan capable of developing patented 3G phones, and Garmin leads the global market for GPS devices. In short, the cooperation will be surely beneficial to the both sides in technology upgrading and product innovation.

In terms of marketing, the two firms will focus promotion of Garmin-Asus in different mobile phone markets, with Asustek in East Europe and Asia, and Garmin in the U.S. and West Europe.

In fact, Asustek has built strong ties with Garmin via OEM (original equipment manufacturing) business over the past two years. In developing Garmin-Asus nuvifone G60, Garmin independently develops related hardware and software, while Asustek designs RF (radio frequency) functions and rolls out the phone.