|Logitech scaling back peripheral business after $180m loss|
|Posted: 24.01.2013 15:44 by Simon Priest||Comments: 20|
The last quarter for Logitech had a stinging loss of $180m for the peripheral company, which means they'll be shedding a number of items that are an ill fit for their "current strategic direction".
Those getting the chop? Remote controls and console peripherals. Instead they'll be focusing more on mobile platforms, and continuing their line of PC products where they enjoy "advantages".
“As we articulated when we started the third quarter, continued weakness in the global PC market was the primary factor in our disappointing Q3 results,” they said.
“These results are unacceptable and we are taking decisive action as an outcome of my strategic review. I was pleased with the continued strong demand for our Ultrathin Keyboard Cover in Q3. We plan to expand our presence in the growing tablet accessories category with the launch of a number of exciting new products later this quarter."
“We are developing more mobility-related products, leveraging the powerful growth of tablets and smartphones. We intend to sustain our leadership in PC platform-related products where we have engineering, distribution and scale advantages. Our goal with PC-platform products is to maximize profitability, while investing selectively in growing categories."
"We have also identified a number of product categories that no longer fit with our current strategic direction," continued the Logitech president and CEO in his . Q3 results for fiscal 2013 saw a 14% year-on-year drop, with sales down 11% in the Americas, 11% in Asia and 20% in EMEA. "As a result, we have initiated the process to divest our remote controls and digital video security categories, and we plan to discontinue other non-strategic products, such as speaker docks and console gaming peripherals, by the end of Calendar Year 2013,” said Darrell.
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