Logitech exits OEM mouse production
Logitech shared that their quarterly operating profit fell 34 percent, mainly due to a shrinking demand for accessories like the computer mouse. The mice and keyboard business are declining, Logitech said it will exit a low-margin business that mainly makes computer mice for PC makers to sell as their own.
Logitech will be increasing prices outside the US to compensate for the currency declines, espoecially the USD - EURO conversion is expensive. For European customers this means price increases of up-to 13 percent across the board.
It reported operating profit of $14.5 million for the quarter ended March 31, compared to $21.8 million a year ago, due to pockets of sales strength, lower costs and fewer restructuring charges. Net sales in the March quarter fell 4.7 percent to $467.2 million, at the high of estimates.
Logitech has at best managed slow sales growth for six of the past seven years. However, underlying demand for new products and action to cut costs and raise prices are positioning it for sustained growth in coming years, it said.
Shares of the Lausanne-based company traded up 2.2 percent at midday on the Zurich stock exchange, following the report.
Once Logitech exits the declining computer mouse manufacturing business, underlying sales results from are set to show sustained sales growth in constant currency terms, Chief Executive Bracken Darrell said in an interview.
"This (retail business) is going to be the bulk of our business going forward," Darrell said. "What we are announcing today is the simplifying of our story."
Excluding currency swings, sales nudged up 1 percent. Logitech's retail business, which generates 90 percent of sales, grew 7 percent in constant currency. Importantly, newer growth categories on which it is betting its future business, grew 45 percent and now make up nearly one-third of its retail business.
Darrell, who has moved Logitech into new product lines while cutting costs in older product areas, said Logitech was prepared to increase prices to offset currency declines.
"We are raising prices around the world," Darrell told Reuters, referring to markets outside the United States. The price increases will take effect in this quarter," he said.
The CEO said he believes the company commands pricing power in many of its accessory lines including what is now its best-selling product line -- wireless Bluetooth speakers. It plans to raise prices around 11 to 13 percent in Europe, for example.
More than half of Logitech's costs and expenses are in U.S. dollars and roughly 10 percent are in Swiss francs while it relies on suppliers in Asia, where currencies have been stable, to source most of its hardware. (1 Swiss franc = $1.0314) (Reporting by Ismail Shakil and Narottam Medhora in Bengaluru; Editing by Keith Weir)
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Senior Member
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I read comments and tried to find the part where they stop all mice production and then I came back and saw some other comments and went "yeah I thought OEM only"

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Joined: 2011-10-22
Ahhh... that's a relief.. I love my toys mang.
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Joined: 2008-09-07
I used to think Logitech made good mices (correct plural) until...
I bought a real mouse
If you got small hands, this is your other choice
Probably the best mices in the world.
Senior Member
Posts: 138
Joined: 2003-07-08
> Logitech will be increasing prices outside the US to compensate for the currency declines,
Shouldn't it be "outside the China", because I am sure most of them are made there (mine G700 is).
> I used to think Logitech made good mices (correct plural) until...
I prefer proper gaming mouse with lots of buttons, so you won't have to move you fingers from AWSD when performing in-game actions. Even 13 programmable buttons is not enough in Battlefield 4 or WoW

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Posts: 989
Joined: 2010-08-24
Meh it's okay. At first I read it wrong and thought they would slowly move out of the mouse business lol.
Owned logitech mouses all my life, the MX518 was the best mouse I've ever used, even compared to my current G500s. I don't really like the Razer mouses. The materials, the feel.. Not for me. I cannot get used to my brother's DeathAdder for example.