TomTom just announced their financial results for the third quarter of 2009. Overall, TomTom’s profit decreased significantly from €58M in Q3 2008 to €28M in Q3 2009. They sold almost 2.6M ‘Personal Navigation Devices’ (PND), and they registered close to 80.000 downloads of their iPhone applications. Revenue resulting from all PND’s was €255M.

We are interested in seeing how much revenue their iPhone applications accounts for. In order to determine this, we need to take into account the prices of their applications:

TomTom Application Pricing

When we multiply the average price for a TomTom iPhone app ($86, assuming US pricing) with the amount of apps sold in the third quarter, this results in $6.9M total revenue. Taking into account Apple’s 30% revenue share, we can conclude that TomTom made about $4.8M revenue from the Apple App Store. This is just a fraction of TomTom’s total revenue from PND’s in the third quarter  (€255M), however, profit per application sold will be much higher than for the physical devices they sell. Additionally, we need to take into account that the TomTom app was released halfway through the quarter.

It will be interesting to see how TomTom’s revenue will develop on the short term, especially since Google is rumoured to be developing a free turn by turn navigation app.

UPDATE: Google just announced Google Maps Navigation; new post coming up.