Portfolio Manager Insights

Navigating the path from GPS pioneer to market leader

Garmin has evolved from its roots in navigation devices into a specialized technology organization, providing purpose-built solutions tailored to niche markets, says Fidelity’s Aidan Brandt.

By: Aidan Brandt
Updated: 3/16/2026
  • Garmin’s business strategy reflects notable precision, according to Fidelity Portfolio Manager Aidan Brandt, who says the Kansas-based firm has distinguished itself from competitors by developing a high-value suite of innovative products tailored to the unique and demanding requirements of its customers.
  • “Imagine a company that doesn’t just navigate the world, but redefines how we experience it,” says Brandt, who manages Fidelity® Select Tech Hardware Portfolio. ”Very few consumer electronics makers have demonstrated adaptability over time like Garmin, given its laser-focused approach to understanding specific user needs, resulting in strong brand recognition and an extremely loyal customer base.” 
  • In overseeing the industry-focused equity strategy, Brandt favors businesses like Garmin with strong long-term earnings growth, returns on capital and free cash flow, especially those that tend to be misunderstood by investors.
  • He notes that over time Garmin has built strong positions in a number of niche markets by emphasizing high-quality, feature-rich products aligned with customer preferences.
  • He admires the firm for thoughtfully expanding beyond its legacy satellite navigation devices – which have largely been superseded by smartphones – and performing well in small, high-value end markets. 
  • From smartwatches for extreme athletes to avionics for aircraft, marine electronics for boating enthusiasts, and high-end automotive solutions, Brandt points out that Garmin’s products are geared for a discerning audience. 
  • He adds that the company’s internal manufacturing strategy helps it quickly manufacture prototypes and profitably address markets that might be too small for competitors that rely on expensive external contract manufacturers. This includes smartwatches specifically designed for pilots, golfers and divers.
  • “More importantly, these aren’t just products, they’re seen as tools that empower users of all kinds to perform at their peak, for which Garmin is able to justify a premium price that devoted consumers are often willing to pay,” says Brandt.
  • He sees evidence of pricing power in analyzing the company’s recent financials: “From an investment standpoint, Garmin’s business strategy has translated into consistent growth, strong returns on capital and a powerful brand that I believe stands out in a competitive landscape,” Brandt adds.
  • Accordingly, in recent months he has meaningfully increased the fund’s position in Garmin, a large holding and overweight (versus its MSCI industry benchmark) as of January 31, 2026.
  • “For many, Garmin might conjure images of legacy GPS devices, but today it’s so much more,” concludes Brandt. “In fact, I believe the evolution of the business, from its early GPS navigation roots to its current diversified portfolio of products, highlights its agility and commitment to innovation.“ 
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