Tomtom reduced its net profit by 1st in 83%, and the competition for PNDS was fierce.

Tomtom just released its first-quarter financial report of 83%, with a net profit rate down year-on-year. When the sales cost is equal, its sales revenue and gross profit are also greatly reduced. (From the official website of tomtom ):

As personal navigation devices (PNDS) Rapidly increase, tomtom, as a leading PNDS integrated product and service provider, shows that the industry is becoming increasingly competitive. Especially in the European and American markets, such as Garmin, IGO, and route are also quite competitive in the PNDS market, and new companies and products are also emerging.

In addition, the increasing popularity of PPC and smart phones, the proliferation of pirated GPS software, but also a great blow to the profits of relevant manufacturers. I believe that the pdns market prospects should be quite promising, but as mobile operators and Google enter the industry one after another, the "Red Ocean" competition has already formed. Currently, competition for software and hardware is no longer the key to differentiated competition. What is important is map resources. In addition to surveying and mapping, poi (information points) is also very important. In the future, the PNDS market will be divided. In addition to large manufacturers, more companies will serve as a part of the industrial chain to provide outsourcing services, focus on software, and focus on maps, focus on data points.

If tomtom can speed up market development (for example, Garmin is already vigorously developing the Asian market and route has already entered the Chinese mainland), it is still a great opportunity to outsource some businesses to reduce operating costs. In my opinion, in the future, in addition to navigation in the PNDS market, the market prospects for value-added services are worth noting, such as weather, transportation information, and related advertisements (such as restaurants, hotels, and scenic spots ...)