TomTom Reports “Steep” Decline in U.S. PND Market

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TomTom reported a 23 percent decline in its consumer business, which includes portable navigation devices (PND)s as the market fell fast in the U.S.

TomTom Says PND Decline is Steep“We have seen a decline of the PND market against a background of a weak consumer electronics market which impacted our Consumer business,” said TomTom’s CEO Harold Goddijn.

The company labeled the U.S. decline as “steep,” and said TomTom’s core PNDs markets will decline by 15 to 20 percent.

During the second quarter ending June 30, PND volume in the North America was 2.4 million units compared to 3.3 million in the same quarter last year. TomTom’s market share was 21 percent.

TomTom, has been branching into other markets including traffic, mapping and automotive services but its earnings still nosedived for the quarter.

The Netherlands-based company reported a loss of 489 million euros ($705 million) after an impairment charge of 512 million euros.  Revenues  fell to 314 million euros compared to 362 million euros a year ago. Without the impairment charge, the company would have reported a positive net income of 11 million euros.

Source: TomTom, AP via Yahoo!News

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