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TomTom bleeds GPS share faster than expected due to phones

updated 01:30 pm EDT, Mon June 27, 2011

TomTom loses North American share fast in 2011

TomTom issued a warning Monday that its GPS units were losing share to Android and iPhone hardware faster than it first thought. Its North American stake was seeing a "faster rate of decline" than it saw at the start and would plunge 30 percent for all of 2011. Europe was seeing an expected 10 percent drop, but more of these GPS navigators were entry models and fewer were being stocked in stores.

The Dutch company lowered its expectations for revenue to no more than the equivalent of about $1.82 million.

As one of the largest and few truly international GPS makers, TomTom has usually been out in front but has been a victim along with Garmin and others of the smartphone push. Turn-by-turn iPhone GPS apps and Google Maps Navigation on Android have together eliminated much of the need for a dedicated GPS unit and often have the features previously reserved for high-end GPS units, such as Bluetooth calling and media playback.

TomTom has usually taken the high road and was one of the first to have smartphone GPS apps. Its rival Garmin has tried to spook users away with fears of roaming costs but has proven unsuccessful since many can get apps with offline maps. Google Maps Navigation has just started adding offline caching and could soon eliminate the need for most any separate app.



By Electronista Staff
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Comments

  1. Salty

    Professional Poster

    Joined: Jul 2005

    0

    Partnership

    They should look to partner with Apple. Period.

  1. LunarMoon

    Fresh-Faced Recruit

    Joined: Jan 2008

    +2

    smarphones will kill gps

    Smartphones will kill gps, simply because it is faster and easy to update an application on a device that the user syncs every day than on a device that is expected to be synced from times to times. Another problem is the hardware. GPS hardware is bad. I have a TOMTOM and touching that screen to select anything sucks. You have to tap hard and firm and it fails to detect taps every time. Another thing is that it is one more stuff to carry, to have a bag, to charge, to have a car support, etc. Price is another killer. $100 for an entry level crappy unity plus 50 to 100 bucks every time you want to update your map? No thanks. On the smartphone arena, companies are forced to reduce price.

  1. climacs

    Forum Regular

    Joined: Sep 2001

    +1

    TomTom does suck

    g/f's mom bought one, g/f borrowed it to try it a few times. the touch screen is really hard to use, frequent errors in what it selects vs. what you touched...and when you are driving, who has the time to fck with it that much?

    and what they want to update the maps.... s**** em

    good riddance

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