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Garmin's post-tariff strategy could include pricier watches and cutbacks
During the Garmin Q1 2025 earnings, its CEO outlined how products like Connect Plus have already begun to "mitigate" tariff costs.
During the earnings call, Pemble said that the AI boom made it the "right time" to launch Connect Plus, that "the response has been positive," and that "this is a long-term thing for us, a very important part of our Fitness segment going forward." The Garmin Fenix 8's continued popularity is the main reason, but the new Instinct 3 was another factor; it added an AMOLED display and better battery life but otherwise kept to the status quo with older sensors and few feature changes for a high price. My guess is that Garmin will upcharge its premium-tier models because it already knows customers will pay above market rate, while the mainstream Venus and Forerunners stay low to compete with other fitness watch brands.
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