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Darren Frequent Visitor
Joined: 11/07/2002 14:36:40 Posts: 23848 Location: Hampshire, UK
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Posted: Mon Oct 06, 2008 11:55 am Post subject: TomTom shares drop as consumer spend declines |
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Source: GPS Business News
TomTom's share price has fallen to a new low following concerns about possible re-financing of the sat-nav manufacturer being necessary. TomToms liquidity had already being called into question following the take over of TeleAtlas earlier in the year. On Friday TomTom shares were trading under 11 euros compared with their high of 66 euros in October of last year.
Data courtesy of Yahoo Finance
Falling margins on PND's and the economic climate reducing consumer spend with worse to come has resulted in fears of a refinancing deal being necessary.
TomTom are not alone with many fearing huge drops in profit compared with earlier forecasts and it is possible that some of the smaller market players may disappear as a result. _________________ Darren Griffin
Last edited by Darren on Mon Oct 06, 2008 1:25 pm; edited 2 times in total |
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bedbug Frequent Visitor
Joined: May 10, 2006 Posts: 484 Location: Hampshire, UK
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Posted: Mon Oct 06, 2008 12:11 pm Post subject: |
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Deep joy! _________________ iPhone 4/4S (iOS 5.1.1); TomTom Western Europe (1.10)/USA & Canada (1.10); CoPilot for iPhone (8), UK mapping, Mac OS 10.8/XP Pro/Win7; Tongue firmly in cheek! |
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SpikeyMikey Lifetime Member
Joined: Mar 21, 2006 Posts: 855 Location: Hertfordshire. Forever blowing bubbles
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Posted: Mon Oct 06, 2008 2:10 pm Post subject: |
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Maybe a new Navigator release for PPC might help cash flow
I'll get my coat! _________________ Mike
TT GO6000 (Europe); iPhone and iPad Pro with iOS TT GO & MyDrive + CamerAlert |
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bedbug Frequent Visitor
Joined: May 10, 2006 Posts: 484 Location: Hampshire, UK
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Posted: Mon Oct 06, 2008 2:18 pm Post subject: |
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SpikeyMikey wrote: | I'll get my coat! | I'll help you on with it! _________________ iPhone 4/4S (iOS 5.1.1); TomTom Western Europe (1.10)/USA & Canada (1.10); CoPilot for iPhone (8), UK mapping, Mac OS 10.8/XP Pro/Win7; Tongue firmly in cheek! |
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Darren Frequent Visitor
Joined: 11/07/2002 14:36:40 Posts: 23848 Location: Hampshire, UK
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Posted: Mon Oct 06, 2008 3:33 pm Post subject: |
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SpikeyMikey wrote: | Maybe a new Navigator release for PPC might help cash flow
I'll get my coat! |
I doubt it! From what I gather, towards the end of v6 it was a loss, too much support and widely pirated. _________________ Darren Griffin |
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Kar98 Lifetime Member
Joined: Nov 25, 2004 Posts: 344 Location: DFW, Texas, USA
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Posted: Mon Oct 06, 2008 3:46 pm Post subject: |
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Darren wrote: | SpikeyMikey wrote: | Maybe a new Navigator release for PPC might help cash flow
I'll get my coat! |
I doubt it! From what I gather, towards the end of v6 it was a loss, too much support and widely pirated. |
This mostly because _paying_ customers got a little bit bored with each subsequent _paid_ version becoming actually worse; dropped features and newly _introduced_, utterly inexplicable map errors in newer maps. |
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bedbug Frequent Visitor
Joined: May 10, 2006 Posts: 484 Location: Hampshire, UK
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Posted: Mon Oct 06, 2008 3:55 pm Post subject: |
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That's got to be the biggest long-term concern for TomTom; the same GPS business news also carries tale of an analyst predicting the market will soon shift from PNDs to mobile devices (I've been saying it for yonks, but there again I'm just anal, not an analyst!).
Now unless I'm mistaken, TomTom's strategy of partnering with a specific smartphone manufacturer signals them transitioning to a PND incorporating mobile phone technology platform, which is not, as far as I see, the same as addressing the mobile devices market.
If all their experience in the market tells TomTom they can't be successful in the mobile device space, then today's drop in valuation is just the tip of an extremely slippery iceberg! _________________ iPhone 4/4S (iOS 5.1.1); TomTom Western Europe (1.10)/USA & Canada (1.10); CoPilot for iPhone (8), UK mapping, Mac OS 10.8/XP Pro/Win7; Tongue firmly in cheek! |
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Darren Frequent Visitor
Joined: 11/07/2002 14:36:40 Posts: 23848 Location: Hampshire, UK
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Posted: Mon Oct 06, 2008 4:03 pm Post subject: |
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bedbug wrote: | That's got to be the biggest long-term concern for TomTom; the same GPS business news also carries tale of an analyst predicting the market will soon shift from PNDs to mobile devices |
Hmm, strange as much of the data shown to us at various events and by various manufacturers is contrary to that.
Smartphone/PDA usage is growing but much slower than forecast a few years back. PND is still seen as the major growth area.
I'm undecided, here the handset market is still lead by fashion and users will chop and change with alarming frequency. For those customers, satnav is a nice to have rather than a must have.
I used to be a heavy PDA user but have settled now on primary devices for each task as necessary. I have GPS apps on my BB and iPhone but none would replace my PND for actual navigation except as a stop gap. _________________ Darren Griffin |
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StuartStrangeboy Regular Visitor
Joined: Nov 09, 2005 Posts: 84
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Posted: Mon Oct 06, 2008 4:12 pm Post subject: |
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That's an interesting point about mobiles because it is far easier for mobile companies to add sat nav then it is for TomTom to become a phone.
Having said that PND's will always have there place it will just be interesting to see what happens. But agree this is not good news at all. |
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SpikeyMikey Lifetime Member
Joined: Mar 21, 2006 Posts: 855 Location: Hertfordshire. Forever blowing bubbles
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Posted: Mon Oct 06, 2008 4:54 pm Post subject: |
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That share price in Darrens original post has now dropped to 9.28 (-13.18%). If I've interpreted the data properly thats -50% (approximately) in one month!
First ViaMichelin pull out, now Tom Tom are suffering (Although I'm sure they'll survive). The way things are going I'll have to nick the wifes Orbit with CoPilot6 back
Any rumours about ALK? _________________ Mike
TT GO6000 (Europe); iPhone and iPad Pro with iOS TT GO & MyDrive + CamerAlert |
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lillyelse Regular Visitor
Joined: Aug 03, 2007 Posts: 87 Location: Derby
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Posted: Mon Oct 06, 2008 5:52 pm Post subject: TomTom |
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I'm not at all surprised at the pending demise of TT, for all the reasons aforementioned.
TT may now realise they can't treat everyone like bandits in attempting to steer the satnav market in the PND direction they have decided is the way forward.
Maybe, a more sensible approach to customer's needs and aspirations may have avoided this situation arising in the first place, aided and abetted by a disregard for after-sales support for the buyer of TT products.
They even had the cheek to email me with a cut-price offer for their outdated map of WE, version....6.75! This is the very map that almost attached a pair of wings to my back during a misdirection in Norwich, and again in the west Midlands near Wolverhampton, not to mention Cornwall. |
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bedbug Frequent Visitor
Joined: May 10, 2006 Posts: 484 Location: Hampshire, UK
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Posted: Mon Oct 06, 2008 8:07 pm Post subject: Re: TomTom |
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lillyelse wrote: | ...attached a pair of wings to my back during a misdirection in Norwich, and again in the west Midlands near Wolverhampton, not to mention Cornwall. | Finally, the answer! I'd been wondering how that Swiss chap navigated across the channel with his jet-pack! _________________ iPhone 4/4S (iOS 5.1.1); TomTom Western Europe (1.10)/USA & Canada (1.10); CoPilot for iPhone (8), UK mapping, Mac OS 10.8/XP Pro/Win7; Tongue firmly in cheek! |
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Zebb Occasional Visitor
Joined: Aug 28, 2008 Posts: 55
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Posted: Mon Oct 06, 2008 11:13 pm Post subject: |
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A low of €8.9 today. (First time I've used the Euro symbol).
Not so smug now TomTom. |
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lillyelse Regular Visitor
Joined: Aug 03, 2007 Posts: 87 Location: Derby
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Posted: Mon Oct 06, 2008 11:49 pm Post subject: Channel crossing |
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That Swiss guy with wings was heading for the Bristol Channel using the scenic route, but TomTom messed up the lane guidance.
Must have been using WE map version 6.75! |
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smiley1081 Occasional Visitor
Joined: Mar 08, 2006 Posts: 51
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Posted: Tue Oct 07, 2008 7:30 am Post subject: |
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Doh...
When a few months back I predectied somewhere that Garmin was going to buy Tomtom for dimes I was kidding in truth, but it seems that it could happen soon... |
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