Satnav maker TomTom profit halves

Satellite navigations system maker TomTom booked net profit of €31m in the third quarter of this year, compared with €58m in the previous year.

Turnover was down 15% at €365m, the company said in a statement.
The figures are in line with analysts expectations but the average sales price for TomTom’s devices is disappointing, news agency Reuters said.
The company told Reuters it expects this trend to continue in the fourth quarter, when it traditionally sells more lower priced devices. But the pace of decline in average selling prices would be slower than in 2008, TomTom CEO Harold Goddijn told Reuters.
TomTom and its sector peer Garmin are facing increasing competition from other sources, such as mobile phone satnav services.

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