TomTom crashes 27pc as smartphones hog the road
TOMTOM shares crashed almost 27 per cent yesterday after issuing a profit warning. The satnav manufacturer said a weak electronics market has forced it to cut its forecasts for the second time in two months.
Its full year revenue expectations are now between €1.23bn and €1.28bn, down from its previous forecast range of €1.43bn to €1.48bn.
Analysts say the increasing popularity of smartphone apps with GPS capabilities is strangling the satnav market.
Tom Gidley-Kitchin from Charles Stanley told City A.M.: “I am certain this is to do with smartphones and the increasing functionality of apps.
“TomTom offers this service too, probably better than its rivals, but why would people want to pay extra?”
Halfords, a major TomTom retailer, dropped three per cent yesterday.