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Logitech Snub OZ As Company Struggles To Find Long Term Growth

Logitech Snub OZ As Company Struggles To Find Long Term Growth

The Company who does not take a stand on the show floor but instead takes the cheaper suites at the Venetian claimed that they had “no” press kits for Australian journalists.

When asked whether they could identify a Logitech PR person for Australian media questions three people sitting at a Logitech service desk said that none was available. 

When asked “why” we were told that they were only interested in talking to resellers.

The Swiss owned Company who are known for their arrogance is facing a tough time in several markets with the downturn of the PC market and consumers globally choosing non Logitech products for their accessories. 

Ironically the Company is doing better in the Australian market than in several other markets around the world.  

The company, who was known as a PC mouse and keyboard Company is now desperately trying to break into new accessory markets for mobile devices and gaming in an effort to reignite lost growth according to CEO Bracken Darrell.

It appears that consumers are turning off Logitech products because of poor design and functionality. 

A classic example is the Companies new K480 keyboard, designed for use with a table the device is cumbersome and heavy especially when one is carrying it in a bag. 

In the six months to Sept. 30, Logitech’s sales in the mouse devices, desktop keyboards and remote control market, fell 1%. This mix of products make up 66% of Logitech revenues.

Despite this poor result the Company is sticking with the more traditional PC and tablet accessories. 

The Company who are desperate to get traction in the home automation devices market is now facing tough competition from the likes of Google, Samsung, LG and arch rival Belkin along with over 50 Companies offering a home automation devices offering at this year’s CES show.

The Company is also under pressure in the sound market with their UE Ears wireless sound system under threat from a host of new and superior products that were revealed by Companies such as JBL, Marley and Harman Kardon at CES 2015.  

Without the UE boom product range several analysts claim Logitech would today be struggling. 

The company is currently running several research projects in an effort to identify new business opportunities, they include new mobile, sound, gaming and home automation product opportunities.

Darrell claims that he would like to achieve growth figures of between 5% and 7% over the next three years Vs current sales growth of 1.1%.

In the past the Company has suffered from tumbling profits as consumers deserted Logitech branded products. 

“We want to have double-digit growth and get back to where we were five or six years ago,” Mr. Darrell said. 

The Company admits that they failed to respond to the rise of Apple’s iPad and other mobile devices that displaced its core market of peripherals for desktop computers. 

The Wall Street Journal said that the company’s performance deteriorated so sharply, it was forced to post four profit warnings in 2011 and 2012, prompting a selloff in the company’s shares that pushed its stock price down about 55%.

During the past year the Company that spends very little on marketing preferring instead to give retailers Co-Op dollar rebates has dumped 13% of its staff worldwide. 

Logitech said that they will bring out between 20 and 25 new products this year but from their actions at CES they are refusing to talk about them despite Australia being a growth market. 


Analysts say Logitech could achieve faster growth in some years, but say it could prove difficult to do this consistently because of tougher competition the company is likely to face.

Andreas Mueller, an analyst at Zuercher Kantonalbank said “It is possible to get sales growth of more than 10% in one year” but when asked “can you do that every year? He said “That is doubtful”.