TomTom shares have fallen by a staggering 27% today, down by EUR1.32 to EUR3.57.
TomTom is the Netherlands-based manufacturer that specialises in GPS services for the automotive industry and operates the most well respected car navigation devices on the market. However, TomTom is suffering from the rapid rise of competition in the form of smartphones.
Many Smartphones now come equipped with GPS and mapping services built in. The rise in Google Android phones, which come with GPS and Google Maps as standard, has meant that many people feel that there is no need to purchase an additional navigation system.
Although the competitor products currently are not of the same standard as TomTom they are improving all the time.
Nike + SportWatch GPS
TomTom has been developing non-automotive ideas and in April 2011 they launched the Nike+ Sportwatch GPS in partnership with Nike. This watch is ideal for runners, hikers and cyclists and is TomTom’s first steps towards developing more products for the ever growing health and fitness market.
However, the news today of falling demand for its car navigation solutions could leave TomTom in a very bad state of affairs while they are developing new products and reaching out to new markets.