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TomTom Annouces Restructuring

offthegrid 91 Points
edited November -1 in TomTom Car Forum
TomTom looks to cut 50 million Euros in costs and mainly from the PND division.

http://www.theglobeandmail.com/news/technology/tech-news/tomtom-recalculates-direction-on-navigation-devices-that-made-it-a-household-name/article2211588/
TomTom's biggest division, and biggest bleeder of sales and profits, is the consumer PND unit, with growth at the other units is still far from offsetting losses at PNDs. The firm has struggled for months to overcome slumping demand in PNDs as consumers opt for free or cheap navigation software as well as cooler gadgets like smartphones and tablet computers.

To the relief of investors, who have seen TomTom's shares plunge from a high in 2007 of 56.326 euros to a Sept 23, 2011 low of 2.4 euros, TomTom finally said on Monday it will focus on driving growth in more promising areas including in-built navigation systems for cars, as well as mapping and live traffic services, while it scales back its consumer unit.

Comments

  • I just bought a tt so it helped someone out. Dam thought you said new tt coming out
  • mvl 191 Points
    I expected this for a while now. The PND was really a 5 year stop-gap while technology got cheap enough for everyone to use factory in-dash navigation.

    I think Tomtom caught onto this strategy in 2009, I think the whole point of the app 10.x launch was to build a new platform (and beta test it on PNDs) that is flexible enough to retrofit into multiple auto manufacturers in-dash systems, and flexible enough to accept ever-changing application requirements.

    Auto manufacturer lead times and ownership times are so long that technology moves far faster than car development cycles. Ideally Tomtom could fit a generic hardware platform in-dash, and update it over the 5-10 year ownership live of a car when new things (eg: Tomtom places, Yelp, Expedia, Twitter, etc) get released.
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