16-05
May 9, 2007 - 16:33 h
From the beginning, TomTom had always used TeleAtlas mapping for their Satellite Navigation products; so it came as quite a surprise when they decided to use NAVTEQ maps - first in the RIDER and then in the ONE Second Edition European model.Many people saw this as the first evidence of a shift to using NAVTEQ for ALL of TomTom's mapping, while others saw it as just a canny business move to keep TeleAtlas on their toes (and maybe even negotiate a better deal with them?).
Better?
Customers also found that the NAVTEQ maps seemed better in some areas than the TeleAtlas versions (notably they were the first to have good coverage of Northern Ireland and Eire), and it looked as though using both mapmaker's products was going to continue. TomTom had even indicated only last month that NAVTEQ-based upgrade maps for the One would be available soon.So, it comes as an even bigger surprise that during a "conference call" to announce their Quarter 1 profit figures last week, NAVTEQ announced that they have lost the contract to supply TomTom with mapping for the ONE from the third quarter of this year.
The TomTom ONE is the highest-selling PND in the world, and has its biggest market in Europe, so this could be seen to be a devastating loss to the mapping company, but they were generally upbeat about their prospects after a revenue growth of 31% over the same period last year.
Comment
Questioned about the impact of this loss, President and Chief Executive Officer Judson Green said: "The revenue was meaningful but TomTom were not a 10% customer", indicating that they had much bigger and better contracts elsewhere. He went on to say that TomTom's decision "was NOT based on the quality of their maps or services", and he was also able to reassure investors with the news that NAVTEQ have signed a "multi-year extension" to their contract with rival system manufacturer Medion to supply mapping for their entire PND range.No mention was made about the mapping for the eagerly-anticipated RIDER 2, but it looks likely that TomTom's customers will not have a choice of map supplier or the ability to compare map products in the future.
The whole conference call can be downloaded (until June 1st 2007) HERE.
Now, I can see that my journey will be over mountains and hills rather than the stick lines (Vector) flat maps TA use. I will say my TTG700 served me quite well using the TA maps and i wasn't that disappointed but then I started to use NavTeq.. my views soon changed! Im not basing my opinion on that fact that the map has my road on it or the road around corner.. I base my comments on my own research, accuracy and usability of the cartography. Using the Garmin and Alpine handheld and integrated car systems… TA vs NAVTEQ = No Contest! (so far!)
