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TomTom

TomTom – Leaders In The Navigation As Well As The Consumer Electronics Industry.

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Online map and navigation systems are the one revolutionary product that is being used by almost every third person on earth. They use them to locate a restaurant, to be safe when in a different place by sharing their location, or just to reach a certain destination. Though the paper maps have been there for a while, the technology-backed online maps are the most useful in today’s time. The navigation technology has not only helped big organizations like the vehicle manufacturers, Apple or Google (for their navigation software for earnings) but has empowered the common people, too. Today, the common people can independently roam around using those maps in a place, where they have never been before. Apart from the famous Google Maps, these navigation technologies are available with Apple, Bing, Here, Jawg and MapBox, etc. Most of the automobile companies are also including navigation systems into their vehicles, one big example includes the electric car manufacturer Tesla. Having navigation at one’s fingertips is the work of companies like TomTom. TomTom is a multinational Dutch company that is one of the leaders in the navigation as well as the consumer electronics industry. Apple’s maps app is also empowered by TomTom’s navigation data.

About the Company

TomTom is a thirty years old company, founded in 1991 and has its headquarters based in Amsterdam. The company started as a software developer (meter reading and bar-code reading) for corporate handheld devices (palmtop, mobile phones). But by end of the 90s, it started to focus on satellite navigation software development. Today, the company is counted among the leading navigation software developers. The company is a publically traded company and trades on Amsterdam Stock Exchange. In the past thirty years, the company has grown to have over 4500 employees. As per the 2019 records, TomTom made annual revenues worth 701 million, and its estimated operating income was € 56 million.

TomTom
Image source: webassets.tomtom.com

The Back Story

Corinne Vigreux, Peter-Frans Pauwels and Pieter Geelen founder TomTom as Palmtop Software in 1991 in Amsterdam. As the name suggests, the company started to develop software for corporate handheld devices, such as the meter reading and bar-code reading software. The company mainly focused on developing the Psion devices software. In fact, TomTom had partnered with Psion and developed EPOC32. Along with that, the company also released its first map software a route planning application in 1996 that worked on mobile devices. By the end of the 90s, TomTom had developed mapping software like EnRoute, Citymaps, and Routeplanner, etc.

In 2001, with a name change from Palmtop Software to TomTom, the company also released its first car satellite navigation software named TomTom Navigator. Later, in 2004, the company added a new feature, a subscription-based traffic update service to TomTom Navigator. In the same year, the company also released TomTom Go, a personal navigation device for common people.

TomTom went public on the Amsterdam Stock Exchange in 2005 and valued at approximately €50 million. The next year, the company introduced water-proof navigation devices for motorcycle users and also, added the text-to-speech feature for road names to its existing navigation software. In 2007, TomTom partnered with Vodafone to develop a real-time traffic data service for its consumers. The very feature was also released for the Netherlands, and in further years it reached the other countries, including the United Kingdom, France, Germany, and Switzerland. TomTom released its software for iPhone in 2009, and for Android, the software came in 2015.

2013, the company released a GPS sports watch named TomTomRunner, the next year, it came with the Runner Cardio GPS, and in 2015, it brought a new action camera named Bandit. By 2018, TomTom had bagged a contract from Apple to be its main GPS data supplier for Apple’s map app. TomTom reported in 2019 that it had earned over 800 million users for its various software and devices. Apart from Apple using TomTom maps data, the company’s main clients from the auto industry include Volvo, Nissan, Fiat Chrysler, Porche, Lamborghini, Bentley, etc.
In the past thirty years, TomTom has also made some strategic acquisitions that have been an additional benefit for its growth. Companies acquired by TomTom include Datafactory AG (2005), Applied Generics (2006), Tele Atlas (2008), etc.

The CEO at TomTom

Harold Goddijn is one of the founders and the CEO of TomTom. He is a native of the Netherlands and was born on 23 April 1960 in Oegstgeest, Netherlands. Goddijn is an Economics graduate from the University of Amsterdam and started his career at a venture capital firm. Later in 1989, he founded Psion Netherlands BV, becoming the managing director of Psion Computers. Goddijn left the company to full-time join Palmtop Software in 1999. With the name change of Palmtop to TomTom, Goddijn became the CEO of the company in 2001.

Altium

Altium, 35 years old PC-based electronics design software development company.

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Integrated Circuits are the biggest discovery in the field of IT and electronics. This little device has helped the IT industry to grow rapidly and computers reach every home as PCs. These circuits are small in size, but there is a lot of work done over it. These are built on printed circuit boards with thousands of lines of code written on them. So building an IC is a huge task, which includes multiple phases. Many software companies write codes for ICs and without these companies, it will be really difficult to make a single IC chip. Altium is one of those software companies that build software for companies that make printed circuit boards. The company is one of the leading software development companies, serving companies based in different parts of the world, including the US, Australia, China, Japan, etc.

About Altium

Altium is a more than 35 years old PC-based electronics design software development company. Nick Martin founded Altium in 1985, and today, the company is known as one of the leading EDA/FPGA software development companies. It is an Australian company with its regional headquarters based in countries like the United States, Australia, China, Japan, and some countries of Europe. The company develops software products for industries that build EDA, Printed circuit boards, FPGA, Embedded Systems, Electronics Design, etc., including telecommunication, automation, aerospace, and defense, etc. Altium Designer is the most popular product by Altium. Apart from that, the company is known for its products like Altium Concord Pro, Altium NEXUS, Vault, CircuitStudio, CircuitMaker, TASKING, Octopart, Ciiva, Upverter, etc.

Altium
Image source: www.altium.com

Founding Altium

Nicholas Martin founded Altium as Protel Systems Pty Ltd in 1985, while he was already working at the University of Tasmania as an electronics designer. The idea of his company came to him when he was working at the company and thought of making more affordable electronic products for people. He merged the electronics design into PC platforms and launched the first DOS-based printed circuit board layout and design tool in 1985. The next year, Protel Systems partnered with HST Technology Pty Ltd. and started its international journey, too. The same year, the company partnered with ACCEL Technologies, Inc. to provide customer support to clients based in the US, Canada, and Mexico. The company brought new software in the following years, including Protel Schematic for DOS, Autotrax, and Easytrax, etc.

At the beginning of the next decade, Compay started to develop FPGA, PCB, and embedded software under its single data model project. In 1991, the company came with the first Windows-based PCB design system for Windows, named Advanced Schematic/PCB 1.0. In 1999, Altium went public on the Australian Securities Exchange. The company changed its name from Protel Systems to Compay in 2001 and made some important acquisitions like Tasking (2001), Hoschar AG (2002), Morfik Technology Pty Ltd. (2010), Octopart (2015), Ciiva (2015), Perception Software (2016), Upverter (2017), etc.
In the past few years, the company has expanded to Asia, Europe, Canada, and the US. As of 2019, the company made annual revenue worth US$171.8 million. The company is currently serving industries including automotive, aerospace, defence, and telecommunications, etc.

The CEO at Altium

Aram Mirkazemi is the CEO of Altium. He is a native of Iran and had come to Australia as a Refugee in the 80s. Though he wasn’t good at English at that time, it was Maths in which he excelled and got admission to the University of Tasmania. In the later years, Mirkazemi found his interest in computers and artificial intelligence as well. While he was still studying at the university, he received an offer from Nick Martin to join Altium (then Protel). For the past 30 plus years, he has served Altium in various positions, including the company’s CTO, senior executive VP of engineering, etc. In 2014, Mirkazemi became the CEO of Altium. He also founded Morfik, a software company that Altium acquired in 2010.

Flex Ltd

Flex Ltd – An American-Singaporean Multinational Conglomerate Famous For Its Electronics Manufacturing Services (EMS)

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The 51-years old company Flex Ltd offers electronics manufacturing services (EMS) and it is also an original design manufacturer (ODM). Joe McKenzie and Barbara Ann McKenzie founded the company in September of 1969. The company was previously known as Flextronics International Ltd and the company is currently based in San Jose, California. Simplicity and efficiency are the two key factors that Flex provides to its customers and help them grow in this competitive market. In 2019, Flex completed its journey of five decades in the electronics industry and also appointed Ms. Revathi Advaithi as its new CEO.

Flex Ltd – A Family Business

During the late 1960s, the silicon valley companies needed more printed circuit boards than they were able to produce in-house. So, Joe and Barbara McKinzie opened a family business called Flextronics where they hand-soldered every part on the circuit boards. Eventually, they automated the board construction, and the business growing in the 1970s. In 1980, the couple sold the company to Jack Watts, Joe Sullivan, and Bob Todd. After this acquisition, the company was converted to a contract manufacturer, and the next year it became the first American manufacturer that went offshore and established business in Singapore.

In the 1980s, the company expanded its solutions and started providing computer-aided design services (CAD), blueprinting printed circuit boards along designing. As Flextronics expanded its product range, it started landing big clients like Sun Microsystems. As the business boomed, the company started building facilities all over Asia but loss started escalating as the economic recession in the early 90s hit hard.

Flex Ltd
Image source: dev.rodpub.com

Surviving The Economic Depression

Flextronics went public just a few weeks before the stock market crashed and the economic recession started in the early 1990s. In order to survive the crisis, the company privatized all the Asian manufacturing facilities with the help of outside funding and eventually closed the US plants. Michael Marks became the CEO of this new private company which filed its IPO in 1994. Marks was determined to rebuild the company’s presence in the US and under his leadership, the revenue tripled within three years.

Between 1993 to 1998, Flextronics International Ltd completed 12 acquisitions and expanded its workforce by hiring more than 10,000 employees. The company built its industrial parks in the low-cost regions which included Poland, Mexico, Brazil, Hungary, China, and the Czech Republic. This helped the company bring down the logistics and transportation costs. In 1995, Flextronics received a contract from Microsoft and the products were smart home devices and wallet-size PCs. During this period Flextronics acquired companies like nChip, the Astron Group, and FICO Plastics Limited. In 1997, the company built a giant size R&D facility in San Jose, California, and a couple of new plants in China and Mexico.

Partnerships and Acquisitions

The Hungarian market for Flextronics developed as Hewlett-Packard made the company primary manufacturer for inkjet printers. In the mid-1980s, Flextronics acquired a bunch of companies that included Neutronics Holdings A.G., Conexao Informatica Ltd, DTM Products Inc, Energipilot A.B., and Altatron Inc. In 1999, Flextronics entered into a service partnership with Corio Inc and later that year announced the purchase of The Dii Group Inc for $2.4 billion. This acquisition to date is one of the biggest in the history of Flextronics.

In 2000, the company went into a five-year outsourcing contract with Motorola. With the advent of a new decade, the company made it among the top three best-managed companies by IndustryWeek. The series of acquisitions continued in the following years as well and by the end of the decade, it landed another big client which was LG Electronics. In 2015, the company’s name was replaced by Flex from Flextronics International Ltd.

In recent years, Flex acquired some of the very important companies which play a significant role in today’s cutting-edge innovative technology. For example, Flex acquired NEXTracker which is a famous solar tracker company followed by Wink Smart Home Platform for smart AI-based tech in our home.

Revathi Advaithi – CEO of Flex Ltd

Revathi Advaithi became the new CEO of Flex in 2019 and she is also an Advocate for women in STEM. Revathi completed her education at Birla Institute of Technology and Science and graduated with a mechanical engineering degree. In 2005, she completed her MBA from Thunderbird School of Global Management. Revathi worked at Eaton and Honeywell before joining Flex.

Apple

Indian Government import hurdles affect Apple and Xiaomi devices

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India and China have been engaging in a war of words for a while now.  The border skirmish that took place in July has led to several disputes and talks which have not led to much. The world also seems to be having a tough time with China due to its handling of the COVID-19 pandemic. This has led to an escalation of problems around the world, leading to trade embargos of various kinds. In recent news, India’s stringent quality checks and clearances regarding Chinese goods have led to import troubles for various brands. Here’s a quick look at what impact the control measures will have on the electronics industry.

How Import hurdles affect Apple

The import of goods such as the new iPhone model and several devices by Xiaomi has been delayed due to India’s more stringent quality checks. All electronic goods coming from China now require tight quality clearances, leading to delays in procurement and order fulfillment. Since the release of the new iPhone model early last month, the demand for the phone has been rising in the country. However, industry sources claim that the need for better quality measures has led to a significant slow-down in the import of such goods. In the past, the Bureau of Indian Standards took around 15 days to process such imports. However, recently the same process has been taking up to two months. 

Other Moves

The BIS began to delay the quality checks and reports sometime in August, shortly after the border incident. The delays in quality checks mostly had an impact on the shipping of laptops, smartphones, and smartwatches. Experts believe that this was a direct repercussion of India’s deteriorating ties with China. Since the border skirmish, India has made the rules regarding foreign investment a lot more stringent. While this has made it more difficult for Chinese companies in India, the government has also been pushing for other reforms. Recently, the Indian government banned hundreds of Chinese applications, including some by ByteDance, Alibaba, and Tencent. All three are some of the biggest tech giants in the world, worth billions of US Dollars, and the government banned an additional 43 apps on Tuesday.

Moves from the Electronics Sector

Since these measures have led to a bottleneck in the procurement of the new Apple models, executives from Apple India have begun negotiations. Top executives from the company are talking to BIS to get them to speed up the process of approval. The executives are also providing assurances that the company will shortly set up manufacturing plants in India for local production and assembly. While it remains unclear just how long the delay will extend, both parties refused to comment when asked what their opinion was on the matter. 

Apple

While Apple does have assembly stations in India, newer models, like the iPhone 12, come from China. India has been pushing heavily to set up establishments in India and make the production a local affair. Contract manufacturers in China make a bulk of Apple’s devices which are then shipped to all four corners of the world. As of yesterday, the BIS had over 1080 pending applications for tablets, laptops, and other devices. A staggering 669 of those have been delayed for over 20 days as per reports from the agency’s website. These included several units built in Chinese factories of Wistron and Compal Electronics and Hangzhou Hikvision. Some of these applications have been pending since way back in September, leading to supply chain delays and hiccups.

Boycott Calls

Both nationalist groups and Indian manufacturers have been calling for a complete ban on imported Chinese goods in recent months. On a similar line, Prime Minister Modi has also been heavily pushing an agenda that supports local production and self-reliance. Experts believe that the Ministry of Electronics and IT are pushing Indian manufacturers to produce more goods locally. As per BIS regulations, various electronic devices need to meet specific predefined standards. While the clearance delays do cause problems for large tech giants, it allows Indians to source more locally.

With the festive season coming up, the delays regarding clearance will lead to huge problems for several companies. Since the government restricted the importing of TVs in July, this is another segment that has been affected by recent events. Such moves will have a detrimental impact on brands such as Samsung and Xiaomi. This might be a crucial moment for India as it tries to improve and increase its domestic production.  We will have to wait and see if the delays hurt the electronics sector or give it an impetus to start producing more locally. The latter will lead to the availability of more products while also providing employment opportunities to millions.