TomTom shares surge on Apple deal

“Shares in Dutch navigation device maker TomTom NV have surged on news that the company will supply map data to Apple Inc.,” The Associated Press reports.

“They rose 12 percent to €3.653 ($4.56) in Amsterdam on Tuesday,” AP reports. “TomTom said it struck a deal to supply the U.S. hardware giant with ‘maps and related information’ and it won’t disclose any other information.”

AP reports, “TomTom has performed poorly in comparison to larger competitor Garmin Ltd, and in April reported a €1.5 million first quarter loss, with sales down 12 percent to €233 million.”

Read more in the full article here.

“Analysts said the deal is a win for TomTom, which has been suffering from declining sales of its personal navigation devices, or PNDs. Standalone satellite-guided direction-finding devices, or satnavs, were the basis of TomTom’s rise; now they are at the center of its current difficulties,” Maarten Van Tartwijk reports for The Wall Street Journal. “With direction-finding software available on smartphones and tablet computers, sales of standalone satnav devices are in long-term decline.”

Van Tartwijk reports, “Rabobank, which upgraded TomTom to buy from hold following the news, said the financial impact can be significant. ‘We believe that TomTom will not only deliver maps, but will also offer content and its highly valuable [high-definition] traffic service,’ the bank said in a note.”

Read more in the full article here.

MacDailyNews Take: This fall, more people will be using TomTom’s solutions than Garmin could imagine in their most hallucinatory dreams.

20 Comments

    1. This is not about TomTom software or look-and-feel (which were old hat on the standalone devices, but much, much better on their iOS app). It is about map related data.

      Incidentally, TomTom’s decline may have been partly due to rather greedy prices for standalone map updates and for its suction cup iPhone holder (+gps antenna booster). But the combination holder-app works well, especially given the free updates on iOS.

  1. Garmin still has the better software on mobie devices. I have both Garmins and Tom Toms and the Garmins offer greater navigational flexibility. Tom Tom units offer way better map updates and more “sharing” though, IMO. The only problem with trying to go strictly iPhone with the GPS is you still need some kind of wi-fi signal to maximze functionality. A standalone GPS just needs a clear view of the sky and the satellites.

    1. The only problem with trying to go strictly iPhone with the GPS is you still need some kind of wi-fi signal to maximize functionality.

      Not really. A decent 3G connection works just as well. I’ve navigated in the car using my iPhone, with no wi-fi connection, many times.

      ——RM

  2. I can only imagine how much cash Apple has pumped into this industry since the purchase of those companies. Yet another small industry changed forever by Apple. Don’t say thank you, just use it and go about your day 😉

  3. O.K. I’m torn. The new map app looks exciting with a lot of GREAT new features,BUT, where is the street view I love. I will be visiting New York this summer and have enjoyed getting to know some of the neighborhoods I will be visiting but the new app may lack that up close feeling. Hope that will be available stand alone maybe.

      1. The new app seems much better than Google earth except for street view. Duplicating all those miles driven by Google will not be easy. They have a huge head start.

        1. So use Google.
          No one is taking that away.

          I’d be surprised if Apple tried to duplicate Street View. It would be expensive, the service doesn’t offer much of an ROI, and there’s no way to do it “cleanly” (it will always be practical, but ugly). So why bother?

          The 2D vector maps and 3D buildings are the parts that actually facilitate online searching, and then finding those things in the real world.

  4. Pardon my ignorance, but with regards to Garmin vs TomTom, why is Garmin so much better than TomTom? Does Garmin have better technology? I’ve used Garmin GPS sports watches for a few years now, and I primarily use TomTom on my iPhone for navigation. They seem to do the same thing- I don’t see a distinct advantage of one over the other.

  5. MDN take: “This fall, more people will be using TomTom’s solutions than Garmin could imagine in their most hallucinatory dreams”

    When did Garmin piss in MDN’s (or Apple’s) cornflakes?

    Or is any competitor to Apple’s newfound partners going to get such spiteful derision?

      1. When MDN used the same tone and attitude that they use for companies and people they *do* have malice for, it’s hard to tell the difference.

        Hell, this isn’t even worthy of an MDN take. At least wait until the CEO of Garmin publicly disses this Apple-TomTom alliance before going on the attack.

        1. Guess we’ll have to agree to disagree. You see malice where I do not. I just saw it as them pointing out how easily the underdog can become the top dog. Kind of like how Apple has done the same.

  6. As nice as Apple’s demo was it will not replace my Garmin GPS for turn by turn directions while driving. The Garmin has a bigger screen and doesn’t require data. It’s easier and simpler to keep them separate. There will be times when I’ll use Apple’s Map program but for everyday use the Garmin is still the goto device.

    1. I would hope that a dedicated GPS device could beat out a smartphone. The point is that, unlike you, most people do not own a Garmin, and if they own an iPhone (or Android phone for that matter) they are likely never going to buy one.

      More generally, I think Android phones ( by volume ) are more responsible for damage to the GPS nav market. Let’s be honest.

  7. I bought a rather expensive ($175+) TomTom device, along with lifetime map updates and lifetime software updates.

    A software update that TomTom supplied to me “bricked” the device, and TomTom told me that it was my problem, and that they would do nothing for me.

    I’m very troubled that Apple would deal with such a reprehensible company. I will not voluntarily give a single penny to TomTom for any purpose whatsoever, and I wish them an early demise. Perhaps Apple will buy their map information division, and simply shut down the hardware division.

    I, too, will keep my Garmin nuvi.

  8. Travelling around by road in Nigeria with an IPhone 4s and the current Map app was wonderful. Even small towns and some villages were mapped. I was pleasantly surprised that the only dead areas were areas without 3G coverage. Everything worked as advertised!

    My TomTom GPS app did not perform at all. Why? The version on my iPhone works perfectly here in North America and it is amazing. But it seemed to lose its mind in Africa. TomTom, Garmin and other GPS manufacturers only provide regional data. If this is what Apple is getting into by ditching GoogleMaps, oh boy. It will look bad. I hope not.

    If this is the future of maps on the iPhone, that would really suck, and it would negate the primary reason for buying an unlocked IPhone, which I consider to be a world phone. We’ll wait and see.

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