In view of the rising competition in the market, TomTom, the Dutch navigation device making company, has warned that its revenue and shares may show a flat graph this year.

"The industry we operate in is going through substantial change. Increasingly, digital maps are being deployed in the battle for mobile phone screens... We see limited impact from this on our current revenue streams from PNDs, automotive and fleet management", said Harold Goddijn, the CEO.

Till 2008, the company had been posting double-digit profits, but its revenue dropped by 15%, in 2009.

Google has recently proclaimed that it may allow free navigation, thereby causing a 50% dip in TomTom's shares.

"Unit sales were better than anticipated, while lower-than-expected average selling prices were offset by a cut on marketing spending", said Martijn den Drijver, Securities Analyst at SNS.