Last modified on Wednesday, 09 April 2008 18:47
Navigation device maker TomTom is suffering after the company cut financial estimates for 2008. The company has been blaming weak pricing power and retailers stocking fewer of its products, particularly in Europe.
TomTom has half a share of the market for devices used in European cars, but apparently retailers are not wanting so much of the product. TomTom said its first quarter revenue will be around 260-270 million euros, less than the 296 million euros it reported in the first quarter of last year. Its shares tumbled 10 percent to 23.70 euros in mid-day trading in Europe.
Chief Executive Harold Goddijn told shareholders that there was still a lot of demand for TomTom products, but the situation was due to retailers wanting to work off excess inventory.