Looks like the writing’s on the wall for TomTom‘s consumer gadget divisions. Says CEO Harold Goddijn, after the company’s latest earnings report came out:
“The PND business is important and will remain an important part of our business and revenue, but the market size in absolute terms is shrinking and we need to adapt our costs, some of which are variable and some aren’t.”
Wish I could say this was a surprise, but TomTom hasn’t been faring too well lately. (Sales were down 23% in the last quarter alone.) Of course, there are benefits to having a dedicated unit that taps into true Global Positioning Systems, but smartphones are increasingly the go-to navigation device for consumers. Add in the saturation level of the Android OS, complete with voice/turn-by-turn directions, and you’ve got a huge proportion of people for whom single-purpose GPS devices are just too redundant.
That doesn’t mean this company will be shuttering its operations entirely, though. Look for it to re-align itself to focus on the automotive industry as well as embedded systems.
For current TomTom owners, as of this writing, there’s no word yet about how the company might continue service and/or offer any ongoing map updates.