May 27 (Bloomberg) -- Garmin Ltd. will sell its first mobile phone next month, United Daily News reported, without saying where it obtained the information.

The handset, called nuvifone, includes satellite-navigation functionality and will challenge Apple Inc.'s iPhone and High Tech Computer Corp.'s Diamond in the market for touch-screen phones, the Taipei-based newspaper reported on its Web site today.

Nuvifone will be sold through AT&T in the U.S. in the second half of the year, the report said.

Garmin, the largest U.S. maker of car-navigation devices, said in January nuvifone will be available in the third quarter.

To contact the reporter on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net.

Last Updated: May 26, 2008 21:44 EDT