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TomTom Diversifies In The Hunt For Profits
Article by: Darren Griffin
Date: 19 Nov 2015
If you follow TomTom on social media you'd be forgiven for forgetting they are a GPS and mapping company, they are working very hard to push their Spark Watch and Bandit camera and speak of little else of late.
TomTom were slow to recognise the growth of smartphones and the free navigation app offered by Google, surprising perhaps given that TomTom began with mapping apps for the early PDAs before launching the TomTom GO in 2004. As sales of smartphones sky rockets sales of PNDs plummeted leaving TomTom with dwindling revenues and occasional dips into net loss.
Their acquisition of TeleAtlas has enabled them to diversify into mapping but the revenues are small and the upkeep of the software, capturing changes and running survey teams means running costs are high.
A few years back they began to offer a GPS smartwatch, initially in partnership with Nike, and a growing range is now available. That may well be a smart move, sports and fitness wearables is a growing market with strong sales but earlier this year they launched the Bandit camera, their attempt to grab a slice of the GoPro market. That is perhaps a less savvy move.
GoPro sales consume the lions share of the market and it's difficult to see how the TomTom brand fits into this space. The Bandit camera has met with mixed reviews, so unique features and design touches help but not enough to steal a lead from GoPro, the undisputed leader in this product category.
So what lies ahead for TomTom? The road ahead is far from certain, factory fit automotive sales are growing but the heady days of the early noughties where sales where measured in the billions are unlikely to be seen again. The market is very different now and it remains to be seen if TomTom can stake a big enough claim in the new market areas to ensure its long term survival.
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 Posted by Privateer on Thu Nov 19, 2015 1:08 pm |
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Whilst TomTom should be applauded for diversification they should also bear in mind the business maxim that it's easier/cheaper/better to retain an existing customer than acquire a new one.
I prefer to go with established products so I use a GoPro for a sports video camera. If I wanted a health watch then I'd got for either a Garmin or a fitbit. If I want music then I listen to my iPod. If I want a SatNav then I will look at TomTom first.
I have a number of SatNav apps on my iPhone but TomTom is still my favourite due to its GUI, route calculation, traffic, and the use of third party POIs (which was re-enabled in the last few days). However if you look at the functionality of previous TomTom SatNav PNDs you will see that there are a lot of features that have been removed as well. You only have to read Andy_P's topic Some depressing lists - What's been dropped in new models to see what's been removed.
If TomTom wants to increase its profits (and what company doesn't) then it needs to ask its existing customers for ideas as to what they want from TomTom's products. Some requests could be added as standard other requests could be as paid for add-ons. But the main thing is for TomTom to talk to and listen to their customers and to reinstate the features seen in old products back into the current and future model range.
I'm sure that TomTom can think of what it can do to improve it's current range of products. However if they can't think of ways to improve their SatNav products then I offer an open invitation to TomTom for them to contact me for advice and ideas! 
Regards,
Robert.
iPhone 6s Plus, iOS 14.0.1: iOS CamerAlert v2.0.7
TomTom GO Mobile iOS 2.3.1; TomTom (UK & ROI and Europe) iOS apps v1.29
Garmin Camper 770 LMT-D |
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| Posted by DennisN on Thu Nov 19, 2015 1:24 pm |
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The factory fit automotive range of satnavs have not been particularly good. Since 2010 I've had TomTom's built in models in my last two Renault vans, first the Carminat, which ran under TT Home and was quite decent - I suppose my only problem with it was it wasn't a LIVE model. So I expected my latest one, the R-Link in 2013, to be even better, being Live equipped. But it's actually much worse in functionality, and with their own funny software for the computer - a derivative of My Drive Connect, but really VERY unfriendly. And like I believe all the other factory fit units, exceptionally expensive to buy, then exceptionally expensive to update the maps.
TT really should have incorporated all the good features from the previous PNDs into the factory fit ones, but they haven't. For some reason, they seem to have decided that dumbing down is the way to go. So now their satnav products are no longer a pleasure to use. I can only assume none of the automotive buyers have tried one out or compared it to an earlier PND - they must be just like the average TT user, listen to and believe the marketing. 
Dennis
If it tastes good - it's fattening.
Two of them are obesiting!! |
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| Posted by Oldboy on Thu Nov 19, 2015 1:50 pm |
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| Privateer Wrote: | | Whilst TomTom should be applauded for diversification ... |
Why diversify when they can't be bothered to get right, what was their core product. IMO even the Classic GO had more useful functionality that the so called newer/better models. There are still quite a lot of the Classics giving good service.
Will these new products, after the novelty has worn off, be dumbed down as the PNDs have.
Richard
TT 910 V7.903: Europe Map v1045
TT Via 135 App 12.075: Europe Map v1120 |
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| Posted by topref on Thu Nov 19, 2015 6:53 pm |
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There is no way I will invest in anything TomTom in the future because of their stubbornness over third-party POI's on their Satnavs. I invested MY money on their product based on their promises. They have reneged on that main promise so I sold my TT Go and bought a Garmin. If they decide to give their customers full-blown ability to install custom-made POI's, then I will reconsider.
As far as I'm concerned, it's payback time.
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| Posted by cmp1951 on Fri Nov 20, 2015 10:53 am |
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I used Tom Tom on my iPaq until they stopped updating the maps for it as they rolled out their own hardware. I paid a fortune for it and was and still am disgusted by the way they treated their first customers. I then moved onto iGo8 which I still use. Even though they no longer supply the program and haven't for some years they still provide updates on a regular basis all be it on a paid for basis. Tom Tom could learn a lot from them.
I also use co-pilot at times but their database of smaller settlements is woeful I have never failed to find the smallest hamlet on iGo8 but co-pilot is frequently bemused.
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| Posted by jc50 on Fri Nov 20, 2015 1:05 pm |
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I have 2 old Tom Tom sat navs and would happily upgrade IF their latest versions accept third party POI's. They don't so I won't and my money will go elsewhere.
"You have reached your destination" |
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| Posted by actd on Sat Nov 21, 2015 12:42 pm |
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| DennisN Wrote: | The factory fit automotive range of satnavs have not been particularly good. Since 2010 I've had TomTom's built in models in my last two Renault vans, first the Carminat, which ran under TT Home and was quite decent - I suppose my only problem with it was it wasn't a LIVE model. So I expected my latest one, the R-Link in 2013, to be even better, being Live equipped. But it's actually much worse in functionality, and with their own funny software for the computer - a derivative of My Drive Connect, but really VERY unfriendly. And like I believe all the other factory fit units, exceptionally expensive to buy, then exceptionally expensive to update the maps.
TT really should have incorporated all the good features from the previous PNDs into the factory fit ones, but they haven't. For some reason, they seem to have decided that dumbing down is the way to go. So now their satnav products are no longer a pleasure to use. I can only assume none of the automotive buyers have tried one out or compared it to an earlier PND - they must be just like the average TT user, listen to and believe the marketing. |
Perhaps it's a plan to make automotive satnavs so poor that people still buy PNDs - I certainly find that the case in my Nissan, where the Connect 2 is worse than the original connect, and neither are a patch on the TomTom - so despite the inconvenience, I still use a TomTom is the route is comple.
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| Posted by Iaindk on Sun Nov 22, 2015 7:41 pm |
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I would have upgraded my Go540Live at least twice now if the new models supported 3rd party POIs.
Two sales lost here, wonder how many others?
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