Garmin and Asustek to End Co-branding on Handsets

Garmin and Asustek Computer will not introduce any new co-branded handsets but will continue to sell models that have already been launched, marking the beginning of the end of their co-branded handset business.

Asustek plans to design and manufacture its own Asus-branded mobile phones going forward and will continue to preload Garmin navigation and location-based service applications on some of those phones, the companies said in a joint statement.

Garmin plans to expand its mobile handset application development strategy and plans to offer navigation and other applications through consumer app stores.

The companies have launched six handset models under the Garmin-Asus brand since they formed a strategic alliance in February, 2009. The companies pledged to continue software updates and support for these handsets.

The companies said they will reveal more details about the separation of their co-branded business during their third quarter earnings calls, which are Oct. 28 for Asustek and Nov. 3 for Garmin.

The companies did not provide a time-frame for the end of the co-branded business altogether.

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