Earnings before interest and taxes of the largest producer of car navigation devices amounted to 126 million euros, above the expected average of 106 million in a Reuters poll of 10 analysts.

However, TomTom shares fell after the earnings revealed an increase in the price war in the burgeoning sector. TomTom devices sold at prices lower than anticipated.

"This is the main reason why, despite a selling price below the average, profits are still higher than expected (...) at least for the first half of 2007," said De Vries .

But careful, because the selling price may go down in 2007 more than originally envisaged, to 210 euros compared to 270 euros in 2006.
TomTom, which went on sale in 2005, sold 1.9 million units in the fourth quarter, above the 1.85 billion that analysts were expecting.