TomTom had another significant drop in sales in its consumer division in its fourth quarter of 2017. Consumer product sales fell by 42 percent and TomTom expects sales to fall further in 2018.
Due to the decline in sales of personal navigation devices, navigation apps and sports watches, the quarterly turnover of TomTom’s consumer division fell by 40 percent to 92 million euros. For the full fiscal year 2017, the division’s turnover decreased by 27 percent to 412 million euros. For 2018, the navigation company expects a further 11 percent decline in its total sales, due to the continued poor performance of the consumer segment.
TomTom has been focusing on its Automotive & Enterprise and Telematics business divisions for some time now. According to CEO Harold Goddijn, 60 percent of turnover now comes from data, software and services: “We are becoming a software company.”
For 2017, TomTom wrote off a value of 169 million euros in the consumer division and there are rumors that the company wants to stop sports watches and fitness trackers due to disappointing sales. The company has cut jobs in this area, but continues to do so until now.
TomTom’s total turnover in the fourth quarter of 2017 amounted to 219 million euros, 17 percent less than a year earlier.