Tom tom sat navs- worth the hype?
Standalone satnavs are fast reaching saturation point in the UK, with dozens of different devices from a wide variety of big name brands all scrapping for the top of the range position. Winning the popularity contest is TomTom, whose brilliant combination of user-friendliness and innovative features attracted 50 per cent of all satnav buyers in Europe last year. This is a huge percentage considering how many brands and models there are available to choose from now.
But with Tom Tom reporting an 83 per cent profits drop this week, and an over-reliance on frivolous features, has it relied on reputation too much rather than actual value for money?
It’s hard to get away from the Tom Tom Go model. It’s by far the most popular satnav device in the UK and can be seen as being the ‘apple iPod’ of its category.
For part of the reason Tom Tom posted an 83 per cent drop in profits this week is that most people who want a satnav probably have gone and bought one, and around half of them have plumped for a Tom Tom Go.
All TomTom can do now is defend itself against a growing number of rivals by dropping prices (it looks pretty secure on that score) and then keep adding features to persuade people who own older satnav devices to upgrade to the new one - features like music and photo playback that nearly every PND maker seems to have, but can’t adequately explain why.
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