TomTom lowers guidance again as customers seek cheap, converged navigation solutions

By on Jun 27, 2011 at 8:54 PM
Business June 27, 2011

TomTom on Monday lowered its 2011 financial outlook again as consumer interest in dedicated navigation devices dwindles. Despite beating second-quarter revenue estimates, the Dutch company cut its full-year revenue guidance to €1.23 – €1.28 billion from its previously forecasted range of between €1.43 billion and €1.48 billion. This marks the second time this year that TomTom has lowered its 2011 guidance — the company had already reduced its full-year revenue forecast this past April. TomTom made a name for itself selling sleek Personal Navigation Devices that could be mounted in any car to provide the user with voice-guided GPS navigation. Following the emergence of smartphone-based solutions over the past few years, however, dedicated navigation companies like TomTom and Garmin have not been able to recover business lost to free solutions like Google Maps and inexpensive paid mobile solutions such as those offered by CoPilot and TalaNav. TomTom does offer a series of mobile applications, but the relative high price points and the flood of competition have proven to be difficult barriers.

Read

Tags:
, , , , , , , , , , , , , , , ,
10 Comments

Related Articles

  • Anonymous

    Personally I wouldn’t say that it’s a general consumer interest issue. But a lack in its ability to function as advertised or other more accurate alternative. To get an intelligent route on our XXL550 it can take 20-30 minutes of retries the first time the address is input.

  • Anonymous

    I guess BGR couldn’t find a royalty-free stock photo of someone in the U.S. with a GPS. That’s definitely a British photo with the steering wheel on the right-hand side.

    • http://twitter.com/gikku iGikku

      maybe, the pic is all messed up, badly ‘shopped. 
      it’s a MkVI Golf but the image of the ”OK” button on the left of the wheel is reversed. It would normally be on the right in a right hand drive Golf. Likewise the star and phone button are usually on the left.

    • http://twitter.com/gikku iGikku

      why “photo of someone in the U.S.” ?   it’s not a US story.

  • Anonymous

    Solution: slash the TomTom app prices. Simple.

  • Denis

    Selling their customers data to police departments is not looking so smart now.

  • http://twitter.com/fyrfyter33 fyrfyter33

    You guys should be smart enough to proofread anything you post. There is no such thing as TalaNav, but you wouldn’t know that, since you didn’t do your homework before posting! Its TeleNav. Duh!

  • Anonymous

    the Tom Tom jsut gets cooler by the day dude. Wow.

    http://www.real-privacy.no.tc

  • Anonymous

    This doesn’t surprise me.  You have Google Maps/Navigation and Bing Nav, which are free.  I had a Garmin, it is almost 18 months old and keeps telling me the maps are out of date.  I tried to update the maps online at Garmin and at the end of a 20 minute process, it “offers” me the option to Buy new maps for the low low price of $70 dollars US.

    If TomTom is similar, I can see why they are rearranging the deck chairs on the Titanic right now trying to stay relevant.   

  • http://twitter.com/kick069 Steve

    i had suggesed to them (like they would ever listen) to drop the apps by $10-15 and include free traffic updates, or why not strike a deal with Apple and pre-install the app on devices. ONce the iphone 5 destroys all need/want for an android device the solution will be resolved  :)

blog comments powered by Disqus