AT&T to Market GPS Smartphone

AT&T (T - Analyst Report) announced the launch date of Garmin Ltd.'s (GRMN - Analyst Report) long-awaited GPS smartphone yesterday.

The second-largest US carrier will be the exclusive distributor of the device (called “nuvifone G60”) in the US starting Oct 4, 2009. This will end a more than year-and-a-half delay in the device's US market launch, and also marks Garmin's first foray into the US smartphone market.

The touch-screen based nuvifone G60 will be sold at AT&T's stores and online for $299, after a $100 rebate and with a two-year service contract. While access to GPS service will be free, customers can enjoy premium value-added services, including real-time traffic updates, weather, movies and local events for a monthly payment of $5.99.

The nuvifone G60, which is positioned as a high-end phone, is distinct from other competing smartphones with GPS technology as it is equipped with full capabilities of a satellite navigator. In addition to its extended local search capabilities, the device is preloaded with North American maps and millions of locations of interest. It also has a touch-screen keyboard, web browser and 3-megapixel camera. Moreover, it can be mounted in a car for use as a navigation unit.

AT&T is the exclusive carrier for Apple Inc.'s (AAPL - Analyst Report) iPhone in the US and is currently enjoying healthy subscriber activations due to the newly-launched iPhone 3GS. The nuvifone G60 represents another major business opportunity for the carrier, which is expected to bring in meaningful revenue streams. The device will leverage AT&T's industry leading Wi-Fi (wireless broadband) footprint and the nation's fastest 3G network, addressing the company's 79.6 million wireless subscribers.

While nuvifone G60 represents a promising prospect, the device's very high-end pricing structure may turn out to be a limiting factor, given the presence of comparatively cheaper alternatives with GPS capability, such as Palm's (PALM - Snapshot Report) Pre and the iPhone.