Thomas Alsop
Research expert covering the global hardware industry
Logitech - statistics & facts
Logitech had to navigate challenging economic conditions in its fiscal year 2023, operating in an industry with weaker demand from both enterprises and consumers amidst global economic uncertainty. Founded in 1981 by a group of computer scientists and engineers, the company’s name originates from the root of the French word for software, “logiciel”. Logitech started as a consulting firm with contract work in publishing-related software development and hardware architecture. However, the Logitech team quickly changed paths when the computer mouse began to surface, and the birth of the computer peripherals company began.
Gaming serves as Logitech’s largest business segment
In 2023, the computer peripherals producer Logitech reported a sales revenue of 4.5 billion U.S. dollars, a fall from the 5.5 billion U.S. dollars generated in the previous year – a testament to the challenging macroeconomic environment. Of the total revenue generated, 1.2 billion U.S. dollars originated from its gaming segment, a part of the business that is anticipated to grow further in the upcoming years due to the rapid rise of live streamers and platforms, such as Twitch and YouTube. Other popular segments for Logitech include video collaboration, keyboards, and pointing devices.Outlook for Logitech
Logitech has benefited from the global move to hybrid work and living with many of its products supporting people as they work from home: during the pandemic, Logitech doubled its net income two-fold. Not only this, but Logitech even upped its advertising costs in 2022, as well as its research and development costs. Logitech has indicated that its growth is based on a variety of opportunities, such as the rise in hybrid work and the expansion of more workspaces that increase the installed base of devices. Hence, its increase in advertising, and research and development, went hand in hand with the company’s model for ongoing growth. As the company moves forward, it will have to deal with any sustained effects of the challenging economic climate, perhaps broadening its portfolio to customers in terms of software and service provisions beyond just the hardware.
