An Apple Analyst Says The Company Could Make an Offer to Acquire TomTom

By: Jeff Stewart  |   December 16th, 2012   |   Apple, Business, iOS, Mobile Apps, News

Apple is still on a mission to improve its in-house iOS mapping app, which the California based firm introduced to less than stellar reviews with its latest operating system; iOS 6 few months ago. So far the company has not provided any updates regarding its progress on its mapping app, but new information in this regard has been shared by an Apple analyst, Hans Slob, who works at Netherlands based Rabobank International.

 

According to Slob, there is a 30 percent chance that the Cupertino company could make an offer of acquisition to the producer of automotive navigation systems, TomTom. Slob says the reason behind the move would be that Apple quickly wants to get rid of all the troubles they are facing with their iOS mapping app. According to him, “TomTom needs the cash from Apple, and Apple needs the know-how of TomTom.”

 

Although, it is unclear at the moment as to whether Slob has made this bold statement on the basis of inside knowledge of the iPhone maker’s plans or it nothing more than a prediction.

 

Nonetheless, whatever the case may be, acquiring TomTom is not a bad idea because when it comes to providing mapping data, this GPS and mapping company maintains a sterling reputation that can be judged from its excellent portfolio of customers, which includes NASA, Waze, Yelp and Apple itself.

 

Therefore, even if Apple has $100 billion in readily available cash burning a hole in its pocket, it may have to pony up some serious change to buy TomTom, whose total value is around 900.9 million Euros or $1.18 billion. More importantly with TomTom’s knowledge, Apple would be able to remove the stain its reputation has received after its very own mapping app was rejected by the consumers over several flaws and incorrect information.

 

Source: Cnet, Ubergizmo