Leading satellite navigation device manufacturer, TomTom, has recently reported disappointing sales figures resulting from the recession.
Over recent years TomTom has become a household name in the UK and other countries, with many drivers opting for TomTom satellite navigation devices for their vehicles. With the popularity of sat nav devices having soared over the years, TomTom and other leading manufacturers of these devices have enjoyed strong sales figures and increased profits, with many drivers rushing to buy the latest models for their vehicles.
However, like most other industries the sat nav industry has been hit by the ongoing recession in the UK, and this has been reflected in the disappointing sales figures that have been recently reported by officials from TomTom. The satellite navigation device manufacturer has reported that figures have crashed to a loss of over thirty two million pounds as a result of plummeting sales levels.
Industry officials have said that in the current financial climate households are having to cut back on spending and really tighten their belts, and this means foregoing luxury purchases such as sat nav devices for their cars. Experts have stated that due to their financial situations many drivers are turning to the humble road map or A-Z to find their way around rather than going out to buy a sat nav system.
TomTom has put the plunging sales figures down to a ‘weak economic environment’. However, it also said that over the course of this year it expects to sell between eleven and twelve million devices, bringing in revenue of nearly one and a half billion pounds. One official from TomTom said: “We are not reiterating our outlook … what we see at the moment is we don’t see a reason to walk away from what we have said before.”