TomTom Earnings - Sales up, Prices Down
TomTom reported earnings and as you would expect out of a GPS maker riding the wave of a surging category the sales were way up; up 123% in unit sales year over year for the quarter, with sales up 33%. Not bad, as they retained a high market share in Europe - 49% in the fourth quarter and achieved a 27% share in the US. All wrapped up in this is a declining average sales price, resulting in a market share push.
While the sales are way up, the investment community got spooked on the reports that margins are getting squeezed as the prices are dropped. With those lower prices, TomTom is expecting to see the GPS market at 38 million units, up from 25 million units in 2007; a 50% growth rate. I'll bet a lot of industries would love to have a 50% growth rate......
They also recently mentioned that hey are having a press conference at CeBit this coming week where they will undoubtedly announce new models.
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Read More in: Earnings Announcements | TomTom GPS News
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Posted by Scott Martin at February 27, 2008 6:34 AM
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