5 Reasons the Garmin Nuviphone (and Garmin as a Whole) is DOOMED

The Garmin Nuviphone is supposed to save the company from irrelevance, but frequent delays have raised concern that it may never come to fruition. Here are five reasons we think the Nuviphone, and by extension Garmin and GPS manufacturers in general, are DOOMED.

5. It's Taking Too Long

Originally announced in January of 2008, Garmin has pushed back the Nuviphone's release date several times. The most recent postponement happened just this May, when Garmin stated that "smartphones are complicated," and promised to finish the G60 Nuviphone sometime in the second half of 2009. Since the initial announcement of their GPS cell phone, a lot has happened. Apple introduced their 3G iPhone which integrated GPS into the device; though it did not innately have the ability to provide turn-by-turn directions, several iPhone applications have been created that pick up the slack. The Garmin Nuviphone was intended to address the needs of consumers with features unavailable at the time. That time has passed, and those features are starting to become less exciting as they become less exclusive.

4. Multimedia Uncertainty

The success of the iPhone can be attributed to its versatility. In addition to being a cell phone, it also provides playback of movies and music, and is backed by a solid, integrated, user-friendly multimedia infrastructure in iTunes. While Garmin has included multimedia playback in the Nuviphone, it's unclear what the delivery system will be. Is the Nuviphone only designed to support user-supplied content? Can it synch with iTunes? (Not likely). Will Garmin develop a store to funnel paid content to its device? Even if they were to attempt such a thing, it would be difficult to replicate (or challenge) the success of the iTunes store. It's not enough that the Nuviphone can accept multimedia content. Users expect a simple, straightforward way of acquiring that content, as well.

3. It's Not Cool Enough

GPS receivers are inherently not very cool. They're functional tools, not flashy accessories. Nobody shows off their GPS receiver the way they do the iPhone. The iPhone 3G is a cell phone with a GPS in it. The Nuviphone, in contrast, is more like a GPS with a cell phone in it, and though the distinction is slight, the psychological difference is significant. It's hard to imagine the Nuviphone galvanizing consumers in the same way the iPhone has, even though it is attractive and loaded with appealing features. It doesn't seem poised to capture the attention of the masses or dominate popular culture, simply because it's not a revolutionary product. It's just a response to one.

2. It's Too Expensive

Though pricing is still in flux due to the Nuviphone's indeterminate release, early reports indicated that the Nuviphone G60 would cost around $500; and that's including the subsidy provided when users sign a two-year contract with a cell phone service provider. On top of that, Internet connectivity and navigational services require an extra $20 monthly subscription. Turning navigation into a subscription service seems like a recipe for disaster, considering the ubiquity of cheap GPS receivers. Ultimately, the Nuviphone requires a significant investment for features that seem like they shouldn't require a premium anymore. The price is going to have to come way down to get people excited.

1. GPS Is In Trouble

In the end, one must wonder about Garmin's ability to support (or even launch) the Nuviphone project. The troubled economy has taken its toll on the GPS industry as a whole, and Garmin reported declines in revenue during the first quarter of 2009, its worst quarter since it went public in the year 2000. Compounding the financial pressure is the factor that sparked the development of the Nuviphone in the first place: GPS receivers are becoming ubiquitous and prices are dropping precipitously. The Nuviphone is a shot at staying relevant. Garmin knows that standalone GPS receivers will become passé once smartphones integrate the functionality. They don't want to be the next Palm, and moving into smartphones is the way forward. Unfortunately, the struggles to actually release the Nuviphone indicates that what should have been their lifeboat might already be sinking.

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