TomTom to step back from wearables market after poor sales
TomTom to step back from wearables market after poor sales
TomTom may be on the verge of leaving the wearables market, after a 20 percent year-on-year consumer sales decline, which management blamed on the Sports division.
“The wearables market has fallen short of expectations… And because of this and because we want to focus on automotive, licensing and telematics businesses, we are reviewing strategic options for our Sports business,” said TomTom CEO Harold Goddijn.
See Also: Where are all the women in tech? They’re in wearables
TomTom’s sports division includes the company’s fitness trackers and the action cams.
According to a report by Wareable, several key figures in the division have already departed. These include Patrick Stal, VP of marketing for TomTom Sports, Costa Grillo, global product marketing manager, Lindsay Mandeville, communications manager, George Sewell, VP of software, and Tom Brown, the head of the UK operations.
Lots of empty desks
Most of them left during TomTom’s last round of firings, in December. The report says that most of the positions have not been filled, leading them to believe that the division might be shut.
Satnav manufacturers have been looking for ways to diversify their brands and wearables, which utilize GPS and low-power technology, seemed like an easy fit. However, the wearable industry has seen sluggish performance all round, with Apple and Xiaomi the only real ‘winners’ in the last six months, as Fitbit has lost market share and Jawbone folded.
Intel has supposedly also “eliminated” its wearable division, following the disastrous Basis Peak recall, which cost the company millions in replacements and refunds.
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