Amsterdam, Netherlands – North American retail-level sales of portable navigation devices (PNDs) fell 23 percent to 4 million units in 2014, slightly less than 2013’s 26 percent drop, TomTom said in reporting its fourth-quarter financial results.
PNDs face competition from factory-installed car-navigation systems and smartphone navigation apps, and PND suppliers are diversifying into GPS-equipped sports watches and other wearables to adapt.
In the fourth quarter, North American PND sales fell 28 percent to 1.3 million units compared to the year-ago quarter.
TomTom also said PND sales are falling faster in North America than in Europe, where full-year industrywide sales were off only 9 percent to 7.7 million.
In North America, TomTom said its share of retail PND sales slipped to 13 percent in the quarter from a year-ago 15 percent. For the full year, TomTom’s share slipped to 15 percent from 17 percent.
In the quarter, TomTom’s North American sales fell 17 percent to 45.6 million euros and for the year by 8 percent to 163.5 million euros, including consumer products, OEM automotive, and telematics.
The company’s global sales fell 3 percent in the quarter to 258.4 million Euros and fell 1 percent for the year to 950.3 million Euros.
Net income fell in the quarter to 468,000 euros from a year-ago 3.2 million euros, but full-year net income was up 12.9 percent to 22.7 million euros.