According to Reuters, Logitech International CEO Hanneke Faber stated that despite growing market concerns that a war with Iran could trigger a global economic slowdown, the company will still increase its investment in product development and marketing this year.
This Swiss-American joint venture manufacturer of keyboards, mice, and video conferencing equipment, which cut costs last year to offset the impact of tariffs imposed by US President Donald Trump, is now betting on gaming, enterprise clients, and artificial intelligence devices to sustain growth.
Despite supply disruptions in the Middle East causing shipping difficulties and an expected sales loss of approximately $15 million (approximately RMB 102 million at the current exchange rate) this quarter (compared to a loss of $5 million in the previous quarter ending in March), Logitech remains determined to proceed with the aforementioned investment plan.
Logitech expects the growth momentum from the fourth quarter to continue into this quarter, with a target of 2% to 4% sales growth at constant exchange rates, totaling $1.19 billion to $1.215 billion (approximately RMB 8.111 billion to RMB 8.281 billion at current exchange rates).
“We have the capability and the necessity to invest,” Faber told Reuters. “Artificial intelligence is driving rapid changes in the world and bringing tremendous opportunities.”
She added, “Our financial situation was sound in the last fiscal year, and we have sufficient funds to support this investment.”
Logitech plans to keep total operating expenses for this fiscal year near the upper end of its long-term range of 24% to 26% of sales, up from 24.8% for the 12-month period ending March 2026.
Fabel stated that this year’s spending on R&D of new equipment is expected to account for about 6% of sales (slightly lower than last year), and sales and marketing spending will also increase further from about 16%.
She also pointed out that the gaming business remains a core development focus, with young consumers spending more and more time on computer games, and the market has strong resilience to fluctuations.
Logitech is also ramping up its efforts to expand its enterprise customer base. With recent improvements in corporate profitability, many companies are investing in new computer hardware, and related demand is expected to remain strong.
Faber stated that the company views the healthcare, education, and government sectors as long-term growth areas.
Because 78% of Logitech’s products use recycled plastics instead of virgin plastics, they have not been impacted by rising oil prices that have increased plastic costs.
Despite stable market demand, supply disruptions in the Middle East continue to impact sales – some products are unable to be shipped from Asian factories to the Dubai distribution center, making it difficult to reach other Gulf countries and African markets.
Faber emphasized, “Demand for our products has not declined; the problem lies solely in logistical disruptions, making it difficult to deliver products to consumers.”
