Austek-Garmin to split after partnership deal expires in 2011

23 Oct 2010

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According to sources Asustek Computer has decided to adjust its Garmin-Asus business operation after the expiry of the dual-brand partnership contract with Garmin in January 2011. The company will resume operations of its Asus-branded handset business.

Analysts say this points to an actual break up of the partnership and would enable Asustek to develop its own branded handset business with additional flexibility, including offering of non-LBS (location-based service) handsets. They add the companies would however, continue to cooperate on navigation software development.

Analysts say the move would offer more freedom to Garmin and there would be less restrictions in future for Garmin to distribute its navigation solutions to other handsent vendors.

 Garmin has earlier worked with Sony Ericsson and LG Electronics, following its entry into handset hardware with Asustek, the company conceded market share in the handset navigation software segment. Examples are smartphone vendor HTC and TomTom's alliance in Europe.

The separation would allow Asustek to branch off from LBS- and navigation-themed smartphones, and return to concepts that were successful in the past according to analysts. The mid-2000s has seen Asustek introduce fashion-oriented handsets as also devices under the Eee brand portfolio.

Meanwhile, Garmin-Asus have launched the Garmin-Asus A10 in the Indian market. The A10 is powered by the Android 2.1 OS, and uses a 3.2-inch capacitive screen capable of multi-touch. Other features on offer are the stadnard smartphone fare with 5 megapixel auto-focus camera, 4GB storage in addition to 512MB of RAM. The handset comes with 512MB of ROM for storing frequently referred files. The A 1500mAh battery is said to deliver a long battery life.

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