TomTom: PND Sales Off in Q2

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TomTom said portable navigation device (PND) sales slipped during calendar Q2 and TomTom’s PND revenue fell by double digits, but the company is making headway in selling maps and data.

North America PND total industry sales fell to 3.3 million units during the quarter, down from 3.5 million for Q2 last year. TomTom’s consumer unit revenue fell 10 percent to $350 million (273 million euros) compared to last year due to lower PND revenue. However, TomTom’s PND market share increased to 23 percent, up from 19 percent in North America.

And TomTom appears to be nimbly transforming itself increasingly to a map seller and OEM data provider so overall net income for the Netherlands based company surged by 69 percent over last year to $44 million for the period ended June 30. Map and OEM automotive content revenue surged 82 percent to $56 million. Licensing revenue was flat. Total revenue declined 2 percent to $464 million.

The company also said it entered a partnership with Twitter to make tweets more location relevant.

The PND category has come under pressure by smartphone GPS, which deliver free turn-by-turn voice driven directions from Google, Nokia and Bing.

Reuters said TomTom admitted that the PND category has lost its spark. “The PND market or segment .. is not the most exciting product right now,” said CFO Marina Wyatt. “When you are thinking of your consumer electronics purchase it is just not the most exciting thing on the market.”

Further insight into the PND market will come August 4 when Garmin reports its quarterly results.

TomTom said it will introduced new PNDs during the second half.

Source: TomTom and Reuters

Photo: TTomTom CEO Harold Goddijn

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