I dont know where my topic went, so Im posting it again.
Garmin-GRMN NPD data indicates lost market share-Underweight@MSCO
Morgan Stanley said November NPD data was modestly negative for GRMN as it lost 18 points of market share m/m and lost its number 1 position in the US market to TomTom. The firm said better than expected industry unit growth should offset share loss with market growth accelerating to up almost 600% y/y and more than 500% m/m. The analyst said share loss was due to aggressive pricing by both TomTom and GRMN and expects GRMN to fall short on Q4 EPS expectations. :theflyonthewall.com
Morgan Stanley said November NPD data was modestly negative for GRMN as it lost 18 points of market share m/m and lost its number 1 position in the US market to TomTom.
Another analyst said earlier this month that Tom Tom did sell out in Nov due to early agressive pricing, which led to GRMN being fully stocked in December and able to take advantage of December buyers.and higher margins...
Same news, two different spins.
Too bad that there isn't a genuine SEC to look into thie supposedly neutral reporting of sales data. The idea that Garmin is running second to Tom Tom in the U.S. is so contrary to expectations which are based on historical experience, anecdonatal information from major retailers, and Garmin's ability to replinish inventories is difficult to believe. If it turns out that Garmin is very comfortably manitaining it's dominate position in the U.S. market the people that circulated this report should be investigated for deliberately attemptint to influence the market. It's very hard for anyone that has been following the GPS market to accept this article's integrity. WW
Anyone know whether market share is measured in units or dollars? I doubt that Garmin lost much if anything if measured in dollars. I also doubt that they will miss q4 earnings estimates. Something would have had to change dramatically for their historically low guidance to be higher than what will actually be reported. Don't know what to believe in this market - but I do know that common sense and patience will pay off
Wow, I've never heard that one before... oh wait, people have been saying that every quarter for at least three years if not longer... so far margins have held up pretty well, so why all of the sudden would things change significantly this quarter? Even if margins do drop, who do you think will bare the brunt of it? Garmin with their complete dominance in high end GPS as well as their Avionics and high end boating equipment or one trick ponies that only compete in the low end PND space? If there is a war, it can only play into Garmin's favor in the long run.