Logitech, that canary in PC coal mine, just fell off its perch
(2022/10/26)
- Reference: 1666747822
- News link: https://www.theregister.co.uk/2022/10/26/logitech_q3_pc_crash/
- Source link:
Logitech made hay during the pandemic but like many businesses dependent on the PC ecosystem, turnover is tanking and income is tumbling.
The peripheral maker recorded revenue of [1]$1.149 billion [PDF] for Q2 ended 30 September, down 12 percent year-on-year. For those six months, Logitech booked revenue of $2.308 billion, down a near $310 million on the same period of 2021.
President and CEO Bracken Darrell said the company has twenty new products to lure consumers for the holidays because nothing says you love someone like a new mouse. This lineup, he says, can “tap into the long-term trends of hybrid work, video everywhere, gaming and digital content creation.”
[2]
Nearly all product divisions reported declining sales in the quarter: Pointing Devices was down two percent to $185 million; Keyboard and Combos fell 15 percent to $200.8 million, Gaming was down 10 percent to $297.6 million, and PC Webcams shrank 36 percent to $60 million.
[3]
[4]
The only relief came from the Video Collaboration unit, which grew two percent to $236.2 million.
The PC market swelled in 2021, in terms of the number of units shipped, but inflation and other factors have taken a toll in 2022, with declines recorded in calendar Q1, Q2 and a sharp correction in Q3. Gartner, for example, estimates that shipments plunged 19.5 percent in the June to September quarter – the [5]steepest fall since it began recording PC sales.
[6]Why are PC webcams crap? Lenovo says it knows the reason
[7]Hardware makers criticized for eco double standards
[8]Lenovo reveals rollable laptop and smartphone screens
[9]More than 4 in 10 PCs still can't upgrade to Windows 11
After the hopeful holiday push, Logitech claims plenty of gadgets are lined up for 2023 when enterprises are expected to start refreshing aging PC fleets with newer boxes capable of running Windows 11 and possibly the Sight AI Camera for video collaboration that has existing traction.
Logitech reported its Q3 operating profit at $127.4 million versus $179.4 million a year ago. This is despite the device maker lopping almost 25 percent off operating expenses. For the six months, operating profit was $1834 million compared to $326.3 million.
[10]
The company also revealed on Tuesday that CFO Nate Olmstead will be leaving Logitech but intends to remain on board while the search for a successor continues. ®
Get our [11]Tech Resources
[1] https://s1.q4cdn.com/104539020/files/doc_financials/2023/q2/Logitech-Q2-FY23-press-release-FINAL.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y1iw2v@fOduUNS3UtejTcgAAAMI&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y1iw2v@fOduUNS3UtejTcgAAAMI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y1iw2v@fOduUNS3UtejTcgAAAMI&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2022/10/11/pc_shipments_fall_at_fastest/
[6] https://www.theregister.com/2022/10/21/why_are_pc_webcams_crap/
[7] https://www.theregister.com/2022/10/20/sustianability/
[8] https://www.theregister.com/2022/10/19/lenovo_rollable_laptop_smartphone_concept/
[9] https://www.theregister.com/2022/10/10/windows_11_adoption/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y1iw2v@fOduUNS3UtejTcgAAAMI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://whitepapers.theregister.com/
The peripheral maker recorded revenue of [1]$1.149 billion [PDF] for Q2 ended 30 September, down 12 percent year-on-year. For those six months, Logitech booked revenue of $2.308 billion, down a near $310 million on the same period of 2021.
President and CEO Bracken Darrell said the company has twenty new products to lure consumers for the holidays because nothing says you love someone like a new mouse. This lineup, he says, can “tap into the long-term trends of hybrid work, video everywhere, gaming and digital content creation.”
[2]
Nearly all product divisions reported declining sales in the quarter: Pointing Devices was down two percent to $185 million; Keyboard and Combos fell 15 percent to $200.8 million, Gaming was down 10 percent to $297.6 million, and PC Webcams shrank 36 percent to $60 million.
[3]
[4]
The only relief came from the Video Collaboration unit, which grew two percent to $236.2 million.
The PC market swelled in 2021, in terms of the number of units shipped, but inflation and other factors have taken a toll in 2022, with declines recorded in calendar Q1, Q2 and a sharp correction in Q3. Gartner, for example, estimates that shipments plunged 19.5 percent in the June to September quarter – the [5]steepest fall since it began recording PC sales.
[6]Why are PC webcams crap? Lenovo says it knows the reason
[7]Hardware makers criticized for eco double standards
[8]Lenovo reveals rollable laptop and smartphone screens
[9]More than 4 in 10 PCs still can't upgrade to Windows 11
After the hopeful holiday push, Logitech claims plenty of gadgets are lined up for 2023 when enterprises are expected to start refreshing aging PC fleets with newer boxes capable of running Windows 11 and possibly the Sight AI Camera for video collaboration that has existing traction.
Logitech reported its Q3 operating profit at $127.4 million versus $179.4 million a year ago. This is despite the device maker lopping almost 25 percent off operating expenses. For the six months, operating profit was $1834 million compared to $326.3 million.
[10]
The company also revealed on Tuesday that CFO Nate Olmstead will be leaving Logitech but intends to remain on board while the search for a successor continues. ®
Get our [11]Tech Resources
[1] https://s1.q4cdn.com/104539020/files/doc_financials/2023/q2/Logitech-Q2-FY23-press-release-FINAL.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y1iw2v@fOduUNS3UtejTcgAAAMI&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y1iw2v@fOduUNS3UtejTcgAAAMI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y1iw2v@fOduUNS3UtejTcgAAAMI&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2022/10/11/pc_shipments_fall_at_fastest/
[6] https://www.theregister.com/2022/10/21/why_are_pc_webcams_crap/
[7] https://www.theregister.com/2022/10/20/sustianability/
[8] https://www.theregister.com/2022/10/19/lenovo_rollable_laptop_smartphone_concept/
[9] https://www.theregister.com/2022/10/10/windows_11_adoption/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y1iw2v@fOduUNS3UtejTcgAAAMI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://whitepapers.theregister.com/
Quick Win
If they're looking for a quick sale they should re-release the "Microsoft Natural Wireless Ergonomic Desktop 7000" kit, I'd buy several so I'm stocked up for the future.
The one I'm using to type this on is missing the lettering on most used keys (yes: ctrl x c & v, along with the nearby shift) and the faux leather's torn on the left side too (duct tape, is there nothing it can't fix) but the wonderous mouse that came with it has long since died and literally nothing else on the market fits like it did, was beautiful, the MX Ergo I've settled on, although great at preventing anyone else from using my computer, still is a poor substitute.
The same keyboard I have at home is fairing better, but they're increasingly harder to come by at a reasonable price (in a UK layout no less - I've gotten used to a lot of things since emigrating, but having the " and @ symbols in the wrong place is a step too far for this expat!).
And no, I'm not prepared to pay the $600+ AUD for those still going on eBay (which, bit hint Logitech, you have a product there's a demand for unlike the toy like tiny new replacements that do fuck all to help the RSI they're supposed to resolve because they're too fucking small!).
If microsoft don't want to be involved because they're not new and sexy anymore, just give them another name and badge, but please re-release them!