The announcement made by GPS device-maker Garmin last year about its plan to develop a brand new touchscreen phone, has just been backed up by the news about the company’s partnership with Taiwan-based PC maker Asustek.

The two companies plan to roll out several “nuvifone” models this year, with one of them taking a direct aim at Apple’s iPhone. The series will include the original Garmin Nuvifone, a Linux-based GPS smartphone which was released last year and will now be rebranded under the name Garmin-Asus Nuvifone G60.

"We will contribute our individual resources and expertise in order to create a diverse line of easy-to-use, location-centric handsets," said Cliff Pemble, Garmin's president and chief operating officer. He added that the sales of GPS smartphones are expected to rise by about 85 percent over the next three years, which is why this is the best time for Garmin to make a strong entry on this segment of the market. The strategy is to deliver a new device at an attractive price.

Asus is also extremely interested in entering the US market, as so far, its smartphone business managed to record success only in Eastern Europe, without reaching any deals with US-based carriers.

Asus’ CEO Jonney Shih stated that the alliance is expected to successfully combine the strengths of both companies in an effort to deliver a set of market-leading mobile phone solutions, with the best possible design features and highest quality features. The partnership is expected to boost the revenue of both companies and also their popularity on an international level.