Sept. 13 (Bloomberg) -- TomTom NV, Europe’s largest maker of portable navigation devices, is seeing slow take-up of its live traffic services among consumers, Chief Executive Officer Harold Goddijn said.
Customer awareness of the Amsterdam-based company’s HD Traffic service, which provides traffic information on its GPS navigation devices, is developing “slowly but surely,” Goddijn said in an interview at the Frankfurt International Motor Show.
“It’s very much a niche market,” Goddijn said. “It attracts a higher price point and therefore also a certain kind of customer. Although it’s not 50 percent of our sales, it’s holding its price and its volume,” he said, declining to forecast how sales might grow.
TomTom, which competes with Garmin Ltd. And Google Inc. aims to get more revenue from maps, services and built-in systems in cars amid a slowdown in sales of portable navigation devices, or PNDs.
The company slashed its full-year profit and sales forecasts in June as U.S. demand for its devices declined faster than anticipated.
Earnings per share will be in a range of 25 euro cents to 30 cents in 2011 and full-year sales will be 1.23 billion euros ($1.68 billion) to 1.28 billion euros, it said at the time.
--Editors: Robert Valpuesta, Simon Thiel.
To contact the reporter on this story: Alex Webb in Frankfurt firstname.lastname@example.org.
To contact the editor responsible for this story: Chad Thomas at email@example.com.