Click to Skip Ad
Closing in...

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

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

Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.