TomTom results 2012: people aren’t buying GPS units anymore12 Feb, 2013
TomTom saw its annual revenue decrease in 2012 with 17 per cent – finishing at just over € 1 billion (€ 1,06 bn). TomTom expects revenue in 2013 to decline further to somewhere between € 900 and 950 million. Net result was € 129 million, compared to a negative net result of € 438 million in 2011.
TomTom is repositioning itself as a service provider for navigation – it’s even venturing into taxi apps. But most of the company’s revenue is still derived from selling standalone GPS units. In that segment, it increased its market share to over 50 per cent, but unfortunately, that market is crumbling as we speak.
Another of TomTom’s markets is selling licences to car makers, but cars aren’t selling well either at the moment. It looks like there’s tough times ahead for TomTom.
According to CEO Harold Goddijn, it’s too early to say when TomTom will start to grow again.[De Tijd, Volkskrant, TomTom][photo: TomTom UX session, Yohan Creemers, Flickr]
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