TomTom announced their Q3 2011 financials today, showing growth in all segments except for personal navigation devices (PNDs), where they are forecasting a market contraction of 25 to 30% in North America and 10% in Europe this year.
They also announced a restructuring program, targeting 50 million Euros in cuts, including job reductions. The restructuring would focus on investing in growth segments and make them less dependent upon PNDs. On a positive note, the company indicated an increase in the take (renewal?) rate of their LIVE services, from 21% last year to 28% this year.
It’s a little hard to predict how the cuts will impact their PND offerings, since the growing automotive segment often directly utilizes PNDs. Perhaps we’ll see a reduction in the number of models offered. How do you think they’ll accomplish their goals?