Last Week saw TomTom announce a large drop in quarterly earnings , with sales of their iconic PND becoming more difficult, needing price reductions to keep sales moving.
Many are suggesting this is the natural evolution of the market, with saturation at a particular price point on one hand, while on the other, mobile phones with GPS are taking market share. I’m not sure I buy the mobile phone argument yet, for sure in the medium term converged mobile devices may make personal navigation devices obsolete, but I don’t think the current generation of mobile devices such as the N95 are there yet.
TomTom has a strong brand name and produce well designed products, (The Apple of GPS ?), maybe the issue is the more familar one of techncology adoption, are we seeing the chasm where early adopters have the devices, but mass-market users have not moved.
If your were to read some newspapers in the UK, you would believe that following the instructions of a “sat-nav” would a best lead you into a field, or at worse onto a railway line in front of a speeding express train.
These reports must have an impact on the buying behaviours of many mass-market consumers, but do they explain Tom Toms recent problem, or are there a group of potential consumers who still find the whole business too complicated and expensive for their needs ?
Is the PND yet to cross the chasm ?
Unlike my friend at lost in spatial, I don’t think this is related to an alien plot (Dr. Who viewers only reference).
Written and submitted from home, using my home 802.11 network.
