Mio, maker of popular consumer GPS products, is reportedly developing its own 3.5G Windows Mobile touchscreen handset. Going head to head with the Garmin Nuvifone, Mio’s offering is expected to come to market in Q1 2009, slightly ahead of the Nuvifone. Details on the presumably GPS-centric phone include a 3.5G chipset from Qualcomm, the proprietary “Spirit” touch user interface and a 3.2MP auto-focus camera. This is not Mio’s first attempt at a GPS PDA phone as it already has a few of Windows Mobile handsets like the recent A502 and 702. This latest phone however, may push Mio’s handset line forward as it will rock 3.5G connectivity instead of Mio’s previous EDGE-only offerings. Mio is also expected to launch a GPS-enabled MID (Mobile Internet device) by the end of Q1 2009. If it can meet its expectations and not encounter any unexpected delays a la Nuvifone, then Mio will will definitely be making some big early-09 moves that may help its market share while posing a serious problem for Garmin.