Jefferies' teardown of the Garmin nuvi 200 revealed that Garmin is using SiRF's (NASDAQ:SIRF) SirfStarIII LP. Based upon their prior checks at the time leading up to CeBIT, firm believed that Garmin was going to use its internal solution, although their checks suggested that the models to be shown at CeBIT were likely only prototypes as the final BOM was not set. After CeBIT, firm's sources continued to indicate that the internal solution would be
used in the nuvi 200, with SiRF likely securing the designs for the nuvi 250 and 270.
This comes as a surprise to the firm and investors as the recent chatter has been increasingly negative with respect to other suppliers (specifically MediaTek) taking share from SiRF at Garmin. Firm views this positively for SiRF as it will likely quell concerns regarding its technology leadership and PND market share.
Notablecalls: Expect to see some buying interest in SIRF.