"We're striving for the holy grail of digital mapping." Tele Atlas becomes more profitable as revenue increases due to its fixed costs, which could balance out the likely long-term decline in TomTom's profit margins, Rabo Securities analyst Frits de Vries said. Tele Atlas, which will continue to supply other manufacturers, however, could lose some of its clients, particularly those companies that compete directly with TomTom in the market for portable devices, analysts said. Makers of built-in navigation systems as well as mobile phone manufacturers--areas in which TomTom has little presence--could be attracted by the new features, Petercam analyst Eric de Graaf said in a note. "We also believe that a price war between Navteq and Tele Atlas has become less likely, as the biggest prize, TomTom, can no longer be persuaded to move to Navteq," De Graaf said.