Garmin CEO says price increases are one option as component costs rise

Garmin CEO Cliff Pemble said the company may consider price changes as it faces higher costs for electronic components and raw materials.

Speaking on Garmin’s Q3 earnings call, Pemble said the company had benefited from buying surplus stock at earlier prices. It is now purchasing components at prices “significantly higher than last year,” and Garmin’s results will soon reflect rising costs for memory and other raw materials, according to the call transcript published by The Motley Fool.

Pemble described pricing as one of several tools Garmin could use to mitigate supply-chain cost increases. He said the company would seek a balance across those options, pointing to its diverse business and vertical integration as factors that helped it navigate higher supply-chain costs driven by tariffs a little more than a year ago.

He did not say Garmin had decided to raise prices or specify which products could be affected. The comments leave open the possibility of price changes, including for its smartwatches, as the company responds to component costs.