TomTom Shares Drop on Price Drop/Income Drop in Q3
I’ll let the Wall Street Journal put it succinctly:
Shares in Dutch navigation equipment maker TomTom NV (TOM2.AE) Wednesday dropped as much as 13.5% after the company posted a 47% drop in third quarter net profit due to a steeper-than-expected price decline for its key navigation products.
Average selling prices for PNDs dropped by 27% compared to last year and 12% compared to the second quarter. The total number of devices sold was actually up 2%. Execs explained the price drop as anticipating promotions for later in the year (holidays).
Still the company is ahead of schedule in cutting costs EUR90 over last year.
by Adena Schutzberg on 10/28 at 07:20 AM |
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