Investing in GRMN vs NVT
I like Garmin M5 but it uses its own GPS receiver chip, instead of the superior Sirf Star 3. Then I like M4, but it doesn't have Bluetooth, …
GPS is quickly commoditizing and Garmin faces tens already established competitors that everyone already knows. Then, how about Sony, Samsung, and tens new comers from Asian countries?
Do a comparison between the feature-rich Pharos 525 that has both Bluetooth and Wi-Fi and Asus A636, both sell at a lower price than Garmin. These products may not be house names yet, but they may eventually eat into Garmin’s meal.
We haven’t being talking GPSs gears from China yet, which is buying GPS chipset from SIRF, Ublox, and probably GlobalLocate soon in millions and massively producing cheap GPS devices and could potentially take over the entire GPS hardware market.
However, the maps and data from Nevteq are local services that need thousand workers who drive every day around the country to record and update every new construction, road sign, ……
The high costs of high costs of collecting, filtering, and distributing data create a very high entry barrier for potential new comers, which enhances NVT's monopoly, well if you insist about Tele Atlas, duopoly.
What do we have to worry? This is another presure-free stock in my opinion. |
