Given Garmin’s struggles in the third quarter, it should be no surprise that TomTom cut shipment forecasts to 18 million PND’s for both North America and Europe, as opposed to its previous forecast of 20 million units for each continent.
TomTom shipped 2.53 million PND products in the third quarter, up year-over-year, but down a huge 18% since last quarter. However, it was good enough to hold the lead in Europe with a 45% market share, but they’re well behind Garmin in North America with just over 20% of the market.
Sadly, TomTom’s earnings are down 41% this quarter despite a 5% increase in gross margins and surprisingly a 5 euro increase in the average selling price (which is still 26% less than a year ago). Of course the company’s recent TeleAtlas acquisition obviously left them with a huge debt load, but they are reporting that it’s been renegotiated for a longer term at a slightly higher interest rate. At least we don’t have to worry about TomTom defaulting on their loan…for now.