After two years of partnership, Asustek Computer Inc (華碩) and Garmin Ltd, the US’ No. 1 portable navigation devices maker, are calling it quits.
Asustek, the world’s No. 5 PC brand, yesterday confirmed that both parties agreed to scrap their “co-branding” strategy starting from next year.
That means consumers will no longer find smartphones that bear the “Garmin-Asus” logo in the future because Garmin has decided to pull out of the smartphone business, Asustek corporate vice president Benson Lin (林宗樑) told a media briefing.
“Navigation smartphones need more time to take off ... We are not keeping up with industry changes and are losing competitiveness,” Lin said.
Ending the co-branding partnership will allow the companies to “focus on [their] respective core competencies,” he said.
Asustek and Garmin teamed up in January last year to introduce co-branded smartphones, with Asustek managing the hardware and Garmin supplying the navigation solutions.
The two companies had plans to officially launch a joint venture this year to enhance the partnership, but the idea was scrapped after sales of Garmin-Asus phones hit a snag in the US amid strong competition from Apple’s iPhone and the wide availability of Google Maps in other smartphones, Lin said.
After the split, Asustek will market handhelds carrying the “Asus” logo, and Garmin will offer exclusive rights to its navigation software to Asustek’s Android-based smartphones “for a few years,” he said, declining to detail the licensing terms.
The split also means Garmin will be able to market its navigation solutions on other app markets for non-Android-based handsets. These include Apple Inc’s App Store and Research In Motion Ltd’s App World.
Garmin’s Dutch rival TomTom NV is selling navigation apps on App Store for US$49.99 for Hong Kong users, US$89.99 for West European users and US$59.99 for US users.
If consumers just get a Garmin-Asus phone, they won’t be able to realize the hidden values offered by Garmin solutions, Lin added.
The two partners had launched six Garmin-Asus smartphones over the last two years, mostly to lukewarm reception. Asustek’s earlier target to ship 1 million smartphones this year remains challenging, analysts said.
The company is hoping that its recent foray into TD-SCDMA phones for the Chinese market will bear fruit and help expand sales.
Lin said Asustek would launch two models running on China’s proprietary 4G standard by the end of the year, adding that the firm was in talks to bundle phone sales through China Mobile Ltd (中國移動), the world’s largest mobile operator by number of subscribers.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01