June 13th, 2012, 4:15 A.M. — After the iOS 6 unveiling at the WWDC event, navigation provider’s shares soared. Can the next iPhone give TomTom a new revenue stream?
To recap this week’s Apple event, Apple unveiled its latest iOS 6 mobile operating system at the WWDC event in California. Apple, unsurprisingly, introduces a new map application that does not support Google Maps, the search giant’s popular navigation and mapping service.
After the announcement, Dutch navigation provider TomTom experiences something positive — in the stock market. According to Fox News, TomTom’s share soared about 12 per cent (some reports 14 per cent) in Amsterdam likely due to its new deal with Apple, the maker of the popular iPhone and iPad.
How can TomTom generate revenue from its mapping and turn-by-turn navigation deal with Apple? Well, reports reveal that TomTom and Apple are not yet taking about the price tag of the deal, or how much the agreement is worth, or how the deal works, like per device licensing? Or one time payment? Or yearly charge?
TomTom confirms that it signed an agreement with Apple for maps and other related information, but adding that it will not provide further details of the deal.
Aside from the current phones and tablet computers, TomTom’s technology is also expected to invade Apple’s next iPhone, the long-rumored iPhone 5. In short, TomTom might see bigger growth after the release date of the iPhone 5 next quarter.
All iPhones, except the iPhone 3G and 2G, and the two iPads plus the 4th generation iPod Touch, are all getting iOS 6 later this Fall (around October), giving TomTom millions of new viewers via Apple’s application. With the new audiences, analysts are now giving positive forecasts. Fox News revealed that Analysts at Rabobank upgraded TomTom to “buy” from “hold” or for starters, from “don’t buy yet” to “hey buy now.” The quick response from analysts is understandable, knowing that Apple’s shares, on average, is still moving to positive direction and might hit record numbers on the launch date of the iPhone 5.
The new iPhone 5, according to rumors and analysts, is hitting the market before the holiday season, is expected to ship with a larger display, new chipset, new design, possibly with a new camera, Long Term Evolution and iOS 6 with the new features including TomTom and Apple’s new Maps app out of the box.
It is worth noting that Google, Apple’s mobile operating system rival that currently owns the biggest smartphone operating system market share (more than 50 per cent worldwide) is bringing new mapping technology to many platforms too, the Google Maps now with 3D technology.
According to Google, the new mapping technology is coming to Android and iOS “in the coming weeks.” In short, TomTom and Apple’s default map app will compete with Google, still.
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