Shares in navigation device maker TomTom surge on news of Apple deal
AMSTERDAM (AP) -- Shares in Dutch navigation device maker TomTom NV have surged on news that the company will supply map data to Apple Inc.
They rose 12 percent to (EURO)3.653 ($4.56) in Amsterdam on Tuesday. TomTom said it struck a deal to supply the U.S. hardware giant with "maps and related information" and it won't disclose any other information.
SNS Securities analyst Martijn den Drijver said in a note that association with Apple will boost TomTom's image and give it access to Apple's huge user base. However, it is not clear how much TomTom will profit directly.
TomTom has performed poorly in comparison to larger competitor Garmin Ltd, and in April reported a (EURO)1.5 million first quarter loss, with sales down 12 percent to (EURO)233 million.