*Justin* schreef op 29 mei 2015 23:59:
19 mei 2015
Hele verslag zit onder onderstaande link, maar dit is hoe sns dacht over verlengen deal met Apple. Ook uitgaande van het idee dat Apple dingen zelf doet, maar ook in co-development met TomTom. Relatie TomTom-Apple is denk ik nauwer dan men denkt (wat ze ook weleens over de lippen laten gaan)
www.snssecurities.nl/Research/Actions...TomTom (Buy): Apple contract extended, 1st signs of VW co-development
The facts:
This morning, TomTom announced that it has renewed and extended its global contract with Apple Inc. This comes just after Apple acquired Coherent Navigation, a US based specialist in so-called high integrity GPS or iGPS.
Separately, we have learned that the partnership with Volkswagen R&D, in relation to semi-autonomous and autonomous driving, has already resulted in various new products. Audi announced on May 5th, for example, that its new Q7 will be equipped with a predictive efficiency assistant, a feature co-developed with TomTom,that uses topographic information (3D characteristics) to assist drivers on expressway interchanges, road splits and entrance and exit ramps. The same article states that the new Audi A8 will be a "front-runner in piloted driving technology and the use of high resolution maps". Maps that are co-developed with "strategic partners such as TomTom".
In relation to the Audi developments, TomTom is working on a patented technology called Road DNA, which combines detailed imagery from real-time cameras within the car with high precision and detailed maps from TomTom to determine exactly where the car is driving.
Our analysis:
The renewal and extension of the Apple contract is somewhat surprising given all the acquisitions Apple has been making in the map space. Not only did Apple acquire Coherent Navigation (which allows for very accurate location determination by using multiple satellite systems), it also acquired Broadmap (cartography specialist), Embark (a transit application vendor) and HopStop (transit data). Those acquisitions at least suggest Apple is looking to develop its own maps or at least co-develop maps. So even if TomTom is not getting paid for the use of its mapping data, the renewal of the contact means TomTom will be able to continue to use the Apple probe data to perfect its maps, routing technology and IQRoutes. That is positive.
The developments mentioned in relation to Audi and the Q7 and A8 show that the partnership with VW's R&D department is resulting in new products that will give VW (or Audi) and edge as well as giving TomTom an edge relative to Nokia Here. We have always argued that TomTom was ahead of Nokia Here in terms of map accuracy and refresh rates in combination with NDS. The development of Road DNA confirms once more that TomTom is ahead of the game, which will result in higher market share and better ASPs going forward.
Conclusion & Action: The extension of the Apple contract is positive as it allows TomTom to continue to perfect its map database using the massive probe data generated by iPhones and other Apple products. The developments at VW (Audi mainly) underscore once again that TomTom is really ahead of the competition when it comes to the development of technologies for semi-autonomous and autonomous driving, technologies that apparently will also result in products that can generate revenue well before semi-autonomous driving is really mainstay. We rate the shares Buy based on the undervaluation versus peers, the 2 long term growth pillars (Telematics and Automotive) and the fast improving FCF in the near term, which is the market continues to underestimate.