Wareable has learned that TomTom could soon exit the wearables market following poor sales of its products, and several key staff walking out the door. The company has also allegedly halted plans for a new Bandit 2 action camera, because of lack of demand.
TomTom has stated in its recent Q2 earnings report that Sports sales have been "disappointing" and "the wearables market has fallen short of expectations". This, combined with a 20 per cent drop in consumer revenue has led the company to focus its attention on the Automotive, Licensing and Telematics businesses instead. The Sports segment isn't dead yet, though, as TomTom will be "reviewing strategic options".
Wareable says that several executives have recently left the company too, including Patrick Stal who was VP of marketing for TomTom Sports and Gabriella Costa Grillo who was global product marketing manager for wearables.
Other key members of the Sports team have left the company too, and Wareable has since learned that their positions have not been refilled, which could signal the eventual demise of the product sector. The Adventurer and Touch never made their way to the US, according to a spokesman for Gap Intelligence, which is often a sign that retailers don't experience the demand for a company's new products.
Wareable has also learned from its source familiar with TomTom's plans that the company will no longer be releasing the Bandit 2 action cam, successor to the Bandit, released in 2015, because of disappointing sales of the first model.
TomTom hasn't said it is quitting the wearables market for good just yet, but if things carry on as they are, we wouldn't be surprised if it has to rethink its strategy.