TomTom plots path to profit with Apple

TOMTOM’S shares climbed by 16 per cent to €3.80 yesterday after Apple unveiled a deal with the satellite navigation systems firm.

The shares, down almost 40 per cent over the past year, jumped to their highest level since February.

On Monday, Apple announced it was replacing old maps partner Google with its own software.

The Dutch company confirmed it will supply the tech giant with “maps and related information”.

“The deal between TomTom and Apple is a big boost for TomTom given its ambitions,” SNS Securities said in a research note.

But the analyst said it was hard to put a value on the deal for TomTom as the fee will largely depend on advertising revenue and perhaps a nominal fee per map. Apple has acquired a string of mapping software companies in recent years.