For several quarters the satellite-backed navigation industry has skyrocketed, unquestionably led by GPS manufacturer Garmin. Now the company may be planning on using its recent success to find its way into the cell phone business as well.

Just weeks ago, the world’s largest cell phone maker Nokia caused a stir within the GPS industry with the announcement that it would acquire mapping technology firm Navteq for a mere $8.1 billion. The move not only irked those at Nokia rival Motorola, but it also encroaches on Garmin’s navigation device business.

Now, it seems, Garmin may be firing back.

According to Jeff Evanson, an analyst with Dougherty & Co., Garmin may be coming out with a GPS-enabled mobile phone as early as next year. The company is already adding more wireless capabilities to its auto and portable navigation devices so they can receive real-time traffic, weather and other data services.

“Garmin knows it could build one hell-of-a fantastic wireless handset,” Evanson said. The company “now believes there’s no one in the world that they can’t go head-to-head with in developing consumer electronics.”