In the spirit of this hot southern summer weekend one cannot help think about being out on the water. One of the necessities for any boater comes in the form of a GPS. Even though many see Garmin as a dead company, those fools overlook the potential of the many other aspects of their company. Garmin does not merely make automobile GPS, though this is a major portion of their earnings, around 50% to be exact. The Garmin earnings sheet also consist of outdoor, fitness, marine, and aviation.
I see the most potential in both the avenues of marine and aviation for one simple reason, potential. Both these portions of the Garmin company are geared up to make moves. These are both discretionary spending items, no question, just like automobile GPS systems. Though, automobile GPS are a dying breed being replaced by the boatload of smartphones being sold. When it comes to boating and flying GPS are not an accessory but rather a necessity that will no time in the near future be replaced. As we see Americans go back aggressively to spending on high end pastimes, such as marine and aviation, Garmin will set to benefit.
When looking at Garmin one cannot overlook the fact that they have held up nicely in the lackluster automobile GPS market. With the potential for growth in many other aspects of their company they look like an overall great company that was once thought to be the next RIMM. An example of their commitment to the future can be found in their new product like the Garmin Swim, a device designed for training swimmers to track their workouts and drills in real time. Whichever way you look at Garmin they are compensating for their weakness in automotive and handling the challenges of the current economic situations well.
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