IBM and Intel may be happy with Q1 but TomTom says it won't meet its 2008 target of 20% growth. The €2 billion TomTom thinks Q1 revenue will be in €260- €270 million range vs. €296 million last year. Operating margins will fall to "low single digits." The company says in Q1 "retailers reduced their inventory levels more strongly than expected, especially in Europe" where TomTom has 50% of the in-car market. TomTom competes against Garmin (larger in the U.S. and overall) and Mitac (growing quickly) and all now face new competition (from cell phones adding navigation to their offer). Go Bummer of a Q1
TomTom Won’t Meet 2008 Target
IBM and Intel may be happy with Q1 but TomTom says it won't meet its 2008 target of 20% growth. The €2 billion TomTom thinks Q1 revenue will be in €260- €270 million range vs. €296 million last year. Operating margins will fall to "low single digits." The company says in Q1 "retailers reduced their inventory levels more strongly than expected, especially in Europe" where TomTom has 50% of the in-car market. TomTom competes against Garmin (larger in the U.S. and overall) and Mitac (growing quickly) and all now face new competition (from cell phones adding navigation to their offer). Go Bummer of a Q1