Reprinted from Wall Street Journal.
Garmin Ltd.’s dream, a satellite-navigation device in everybody’s hand, is getting closer by the day. Unfortunately a lot of those gadgets are cellphones, not the dedicated devices Garmin makes. That is one reason its shares are down about 70% from a high in October. And as the history of technology group Palm Inc. shows, Garmin’s shares may have further to fall. [Editor’s note: Planned phone is different than smartphone / blackberry offerings by Garmin already in the marketplace.]
Palm’s personal-digital assistants were ubiquitous in the late 1990s. Its challenge came when cellphone markets boomed, and cellphone makers turned their phones into PDAs. Since people didn’t want to carry two devices, they chose their phone.