Garmin 2002 Annual Report Download - page 20

Garmin’s mainstays in the recreational market — handheld GPS
receivers — are becoming smaller, lighter, easier to use and more
affordable. With the recent introduction of the Geko
™
series,
Garmin now has a simple, rugged GPS unit selling below $100.
This product is positioned to attract more entry-level users and
everyday consumers. Additional handheld products in develop-
ment will retain Garmin’s standards for durability and utility
while offering our active customers improved capabilities such
as low power consumption, simplified operations, color displays
and compact form factors.
In the wireless communications category, Garmin will continue
its development of phones with integrated GPS and electronic
organizer capabilities. While the majority of network and usability
testing for NavTalk took place in 2002, the sales activity will occur
in the coming year. Ongoing discussions with wireless outlets
will establish the network for distributing the NavTalk GSM to
customers outside the U.S. We will also look for unique ways
to expand or adapt the product’s feature sets to suit the needs
of outside partners.
Garmin’s emphasis on quality, coupled with efforts to continually
improve and expand our product offerings has enabled us to
remain a leader in the consumer and general aviation markets.
We look forward to future opportunities for creating innovative
new products that will serve our active customer base around
the world.
Growth initiatives for 2003
Garmin’s course of action for 2003 and beyond is to maintain our
customer-driven focus while continuing to develop innovative,
reliable products. Observing trends in the marketplace and staying
in tune with customers’ needs help Garmin plan for new products
and identify growth areas. For example, early response to inte-
grated products such as Rino indicates interest for devices where
GPS functions can be used seamlessly with other technologies.
In aviation, progress continues on the development of the inte-
grated cockpit system, which will provide a wide range of flight
information, communication and control capabilities. The system
is being designed with an intuitive user interface, helping to
minimize pilot workload and reduce system installation complexity
and weight. This project, which involves the development of flight
control technology and AHRS (Attitude Heading and Reference
System), is on track for certification near the end of 2003.
Garmin has committed research and development efforts in the
area of automotive navigation. We are continuing to work
toward the next generation of automotive navigation systems.
In our portable automotive products, Garmin is working on
incorporating faster processors and improving the user interface
with capabilities such as dead reckoning. This feature allows
the system to continue providing navigation data in shaded
environments such as the urban canyon.
For our marine product line, Garmin will design products that
offer superior color and feature sets at a competitive price.
Marine customers also desire more offshore cartography, so
Garmin will continue expanding the coverage areas of our
BlueChart digital marine charts. We will also enhance our line
of freshwater sonar products with units that appeal to a wide
customer range — from the entry-level, competitively priced
Fishfinder 80 to the Fishfinder 320, our first stand-alone sounder
with color.
We are encouraged by the early market response to our recently
announced iQue
™
3600. This highly anticipated personal digital
assistant (PDA) has built-in GPS capabilities, including turn-by-
turn and voice guidance, plus an MP3 player and full color screen.
iQue is our first product to combine the Palm OS
®
platform and
GPS navigation in a single, highly integrated handheld. With this
product, Garmin is introducing GPS to new customers, including
business people and mobile executives. Garmin is also working
with third-party software developers, which represents additional
opportunities for growth.
19