Tom Tom under pressure as smartphones dominate sat nav market
The struggling Dutch sat nav manufacturer Tom Tom is under increasing pressure to alter its business model, after smart phones began dominating the sat nav market. The manufacturer has said that sales and profits have recently begun to fall, and will continue to do so throughout 2012 as more people turn to free sat nav apps that can be downloaded onto smart phones.
Tom recent posted their quarterly results, and whilst meeting forecasts, they were disappointing for the firms. They said that the y expected revenue iun 2012 to be around £932m, compared to over a billion that they achieved in 2011. The fourth quarter results fell 76%.
Could this signal the end of the firm? It’s still a long way until Tom Tom reaches rock bottom, so the firm does have the chance to change their business model to accommodate for this increasingly mobile world. Could Tom Tom start turning its back on hardware and start developing more software, instead? It seems that would be the best way for Tom Tom.
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