TomTom 2007 Annual Report Download - page 21

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15
TOMTOM ANNUAL REPORT 2007
“Independent research shows that using a PND reduces miles driven by 16%
and travel time by 18%. This is good news not only for TomTom and our
customers, but for the environment as well.”
GEOGRAPHICAL COVERAGE
During 2007, our geographical coverage expanded
to add Brazil, Japan, Latvia and New Zealand to the
list of countries where our products are sold. By
year-end, TomTom products were available in 30
countries on 5 continents.
In Europe, TomTom products were available in
21 countries and we continued to enjoy a stable
leading market share. In North America, 2007 saw
TomTom further increase market share. Thanks to
our strong growth in the US market, our European
revenue sharedecreased to 80%, from 90% in 2006,
while revenue share from the US increased to 16%,
from 8% in 2006.
TOMTOM MOBILITY SOLUTIONS
Following our announcement in 2006 of a strategic
alliancebetween TomTom and Vodafone
Netherlands to jointly develop breakthrough traffic
data technology, we introduced our new premium
traffic service TomTom High Definition Traffic (HD
Traffic) in November 2007. The HD Traffic service
is available for the first time with the new TomTom
ONE XL HD Traffic, with other devices to follow.
An accessory that enables people who already own
aTomTom to receive HD Traffic without having to
buy a new device will be launched in early 2008.
In June 2007, TomTom and Vodafone UK announced
the planned introduction of HD Traffic to the UK
during the firsthalf of 2008 and in early2008, we
announced with Vodafone Germany the planned
introduction of HD Traffic to Germany during the
second half of 2008. Our goal is to have HD Traffic
available for 50% of our European customer base
by the end of 2008.
(For more about HD Traffic, see New Services –
page 24).
AUTOMOTIVE
It is difficult for car manufacturers to develop
integrated satellite navigation systems that meet
consumer demands for cost effective, easy-to-use
navigation with the latestinnovations of the PND
industry. Bringing our extensive navigation
experience and innovation capabilities to the
automotive industry therefore is an integral part
of TomTom’s long-term business strategy.
In the second quarter of 2007, we created a
business unit that will focus on developing and
selling navigation systems and services to the
automotive industry. With this automotive team,
based in new offices in Eindhoven in the south of
the Netherlands, we are accelerating the build-up
of our automotive expertise and R&D capabilities.
To strengthen the Eindhoven unit, in the second
quarter we acquired a dedicated and experienced
automotive team, formerly working for Siemens
VDO, to service car manufacturers and OEMs.
In October, we announced the availability of the
world’s first portable navigation device embedded
at the car manufacturer. The latest Toyota Yaris
comes with the option toinclude a TomTom PND as
part of its built-in radio system. This new solution
offersthe motoristthe best of both worlds: all the
advantages of Tom-Tom’s easy-to-use PND user
experience in an embedded system that fits
seamlesslyintothe radio as part of the Yaris
dashboard.
TomTom continues to expand its automotive
product range. This will include integrated
navigation systems embedded in car dashboards
that, in combination with TomTom HOME and our
extensive service portfolio, will significantly enrich
the motorist’s navigation experience.
TOMTOM WORK
TomTom WORK provides businesses with
Connected Navigation solutions that combine our
award-winning navigation with tracking & tracing,
reporting and two-way communication between
fleet manager and fleet vehicle drivers. We have
grown intothe business-to-business area with an
easy-to-use product that offers options to suit the
needs of fleets of all sizes.
In 2007, TomTom introduced the world’s first truly
connected PND, the TomTom GO 715, with a built-
in SIM card for commercial vehicles that offers a
combination of navigation, two-way data
communication and traffic information through
either the basic COMPACTor moreadvanced
ACTIVE solutions. These we see as meeting the
needs of another critical sector in the B2B market.
TomTom WORK is active in six countries on two
continents, and during 2007 more than doubled the
number of its subscribers to 34,000 by year-end,
from 14,000 at the end of 2006.