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Navigation Apps Won’t Cannibalize GPS Devices in the Short Term, TomTom Says

August 18, 2009
by Lauren Goode
Reporter, The Wall Street Journal

Lauren Goode

TomTom’s new iPhone app is similar in many ways to the company’s personal navigation devices, but the software’s lack of multitasking ability and smaller screen size are a few ways in which it’s different, says Tom Murray, its vice president of marketing development.

When asked whether the emergence of navigations apps–including TomTom’s own–spells the end of standalone devices, he says, “We’re trying to make TomTom navigational systems available to people across all platforms that are important to consumers.”

Devices represent 80 percent of TomTom’s current business, and while that may shift as smart phones become a bigger part of the market, “we continue to see a robust demand for [portable navigation devices] going forward,” Mr. Murray says. “This is an opportunity to grow, not a threat to us, especially in the short term.”

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