Tomtom profits slump by a third

Seamaster · Frequent Visitor Joined: Jun 05, 2006 Posts: 331

http://www.bbc.co.uk/news/business-12506437

M8TJT · Posted: Fri Feb 18, 2011 3:43 pm Post subject:

Nothing to do with reduced features in their newer models then?

Kremmen · Posted: Sat Feb 19, 2011 7:26 am Post subject:

I certainly would not buy another TT.

Not only the POI issue (only partly sorted apparently) but the stream of customer support issues posted around.
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Guivre46 · Posted: Sat Feb 19, 2011 10:48 am Post subject:

I've only been a sat nav user since 2007, but my impression was that TT were responsive to the user community discussions at the beginning, and have gradually withdrawn as their operation grew. There's been some reference here and elsewhere about whether or not TT gives a damn about what is said on forums. But it seems a basic truth in all commerce, that if you get too far away from your customer base, you end up in trouble.
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MrT · Posted: Sat Feb 19, 2011 11:27 am Post subject:

Rumour has it that TomTom are going to diversify into car manufacturing. The car will be launched in June with the engine promised by Xmas. Very Happy

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xtraseller · Posted: Sat Feb 19, 2011 12:15 pm Post subject:

Lets face it, TT are in a quickly changing market, and restucturing their software platform early on to make it easier to adapt to the way in which it will be deploted in future, including flexability to work with multiple vendors in-dash units

With this comes great challenges, and they will loose some customers along the way, but rather than allow them to continue down the old path and then wither and die in a few years they are embrasing the change

On the whole, I think they are going an okay job - certainly the best sat nav unit out there - and they are doing a better job than you or I could do, I am sure of that Wink

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gatorguy6996 · Posted: Sat Feb 19, 2011 12:54 pm Post subject:

Garmin's in that same OEM and in-dash market XtraSeller. TomTom's late to the game. In fact Garmin's has been and is used in far more nameplates installs than TomTom. Their aftermarket in-dash started with a Kenwood partnership back in 2007, 3 years before the idea popped up at TomTom. There's not nearly the market nor the potential profit as there was in pnd's. TomTom's foray into supplying a combined audio/nav unit for Suzuki is getting miserable reviews, with users calling it confusing and a horrid design ( http://www.autoweek.com/article/20110217/CARREVIEWS/110219887 )

TomTom's strong suit isn't hardware, it's on the software side. Always has been. They've never built anything themselves. Their best option is going back to their roots, which is essentially what they're attempting with the Sony and Nike partnerships, and the negotiations to get "Live Traffic" and perhaps other connected services accepted as OEM supplied options. Their smartphone plans have fallen apart and no longer seem to be any priority. TeleAtlas has cost them far more than they'll ever get back. The current pnd strategy appears in disarray, tho much of it isn't within their control. No need to go on further. TomTom and, to a lesser extent (for now) Garmin, are on a downward spiral for the next several years. OEM indash nav isn't going to pull either of them out of it.
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Guivre46 · Posted: Sat Feb 19, 2011 1:21 pm Post subject:

Just add that people's view of the OEM software will be coloured by their experience of the software running on their PND. Also if the software causes problems then OEMs will have lots of customer support issues, and this may mean that they look for reliable software elsewhere.

If I was TT, I'd have a major review of all software for models issued in the last three years, ensure that bugs are ironed out, and issue updates accordingly. A pretty instant increase in good-will would result. As for 100x/Via, some honest information about where things currently stand, rather than marketing gloss, would be a positive move.
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Go 530T - unsupported
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Darren · Posted: Sat Feb 19, 2011 1:30 pm Post subject:

gatorguy6996 · Posted: Sat Feb 19, 2011 1:41 pm Post subject:

Agreed Darren. I was pointing that out only because many probably think Tomtom was building the hardware too. Letting other's design the hardware (ie Sony) and simply supplying navigation software for it probably makes more sense for them in the long run.
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Andy_P · Posted: Sat Feb 19, 2011 1:46 pm Post subject:

Who actually builds the TomTom hardware then?

gatorguy6996 · Posted: Sat Feb 19, 2011 1:51 pm Post subject:

They've used at least two different Chinese contractors in the past 5 years, tho one of them has been the primary source. Their names escape me right off tho.

BTW, Garmin's not off the hook either. Wait till next week when they announce results. I expect even worse from them, tho on firmer ground overall at least in the short term.
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Darren · Posted: Sat Feb 19, 2011 1:57 pm Post subject:

These figures are to be expected as the market re-adjusts and goes through a recession. I'm sure TomTom will survive but there will be more pain to come for sure.

Garmin do at least have a number of markets where hardware will always be king unlike TomTom but PNDs are far from dead. There is still a vast market to be served but these are luxuries and in tough times, they are one of the first things to be erased from the shopping list.

I'm sure many people think devices are made by the brands whose name adorn them but these days that is becoming less and less true.
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xtraseller · Posted: Sat Feb 19, 2011 3:51 pm Post subject:

I agree, it is wise to outsource manufacturing - it gives flexability and a supple cost control arm when demands increases and decreases

I also believe TomTom is making great inroads into in dash and co-branded units, though the automative industry itself is to blame for the very slow developement of this market and its breakthrough into the normal - instead hoping we would all pay £2000 for a sat nav built it, that was hopelessly designed and supported

The transition of their software to web-based will aid its implementation in to more generic in-dash units

With this must come the ability to update over the air (now being achieved with TT), USB stick and Memory Card

And like Darren says PND is far from dead - for the moment anyway, car technology is way behind PND, and its far easier (read affordable) for us to go out and spend £200-£300 on the latest PND with every feature we want than on a new car twice a year
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dhn · Posted: Sat Feb 19, 2011 3:55 pm Post subject:

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