The Garmin-Asus partnership, which began in January 2008, will not be continued when the contract with Garmin expires in January 2011, Digitimes has reported.
It quoted Taiwan-based handset makers, claiming that Asus will now go it alone with its branded handset business. This will allow the company to develop its own-brand handset business with more flexibility, including offering non-LBS (location based service) handsets, the sources said.
However, unlike many the two companies will remain on friendly terms and continue to collaborate on navigation software development.
Garmin may also benefit from the deal as it will now also be able to see other companies and distribute its navigation solutions to other handset vendors.
The cracks in the relationship have been showing for a while now. In September Garmin hinted it could leave the smartphone business due to low quarter figures.
In the second quarter, smartphone sales managed only $27 million, which was well below the outfit’s expectations, prompting Garmin CFO Kevin Rauckman to say he would make decisions within the next couple of quarters on whether the company would continue to invest in this sector.