Garmin's nuvi Hits Markets

Garmin (GRMN - Analyst Report) recently launched a new connected portable navigation device (PND), nuvi 1690, with several robust features. AT&T(T - Analyst Report) will be its wireless network partner for the device. The product is expected to ship in the fourth quarter, which should enable the company to make the most of the holiday season.

According to iSuppli, connected PNDs are likely to grow from around 3% in the North American market in 2008 to around 15% in 2010 and constitute half of all PNDs by 2013. Therefore, the new device is targeted at an important growth segment.

Garmin’s nuLink service enables the user to connect to Google (GOOG - Analyst Report) Local, which provides localized information on traffic, weather, fuel prices, movie listings, flight status, local events and even telephone listings. The service includes Garmin’s patent-pending Ciao, a location-based social networking system that allows users to share their whereabouts with others on the network.

Another important feature is ecoRoute, which could be particularly useful for cash-strapped consumers. Selecting a “less fuel” option on the device helps to determine the most fuel efficient route after considering consumption rates, driving speeds and vehicle acceleration data.

The Bluetooth feature allows conversations between consumers of paired devices. The device is priced at around $500, which includes two years of free nuLink services. After two years, the services will cost $5 a month.

Some industry observers compare the new-age PND to smart phones. We think that both smart phones and connected PNDs will have their own markets, as the services provided by smart phones currently appear to be superior than PNDs but come at a significantly higher cost.