CEO Hanneke Faber reiterated Logitech’s long-term goal of being a “high single digit” company to increase the revenue, the counter growth will appear more and more around the world installed base and increasing prices of attachments/ASPs than new PCs being shipped.
Logitech is shifting to more scale B2B mix (now ~40% B2B, targeting ~50/50), pursuing areas close to learning M&A while benefiting from China’s gaming revolution (20%+ growth) and AI-enabled product features.
The company has a strong financial position—CHF 1.5 billion in cash and no debt—and plans to continue raising dividends, selective M&A and acquisitions, supported by a flexible multinational supply chain to manage prices and disruptions.
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Logitech International (NASDAQ:LOGI) CEO Hanneke Faber said the company’s long-term ambitions remain intact as third-party research points to a potentially weak environment for PC shipments tied in part to memory costs and shortages. Speaking at Bernstein’s event, Faber reiterated Logitech’s goal of being a “high single-digit” top-line growth company over the long term, driven by mid-digit growth in its core segments, as well as contributions from verticals, adjacent, and “a little bit of M&A.”
Faber stressed that Logitech’s peripherals business is tied more to the global installed base of PCs than annual new unit sales. He cited an estimated 1.5 billion to 1.8 billion PCs in use worldwide and said that the value of attaching peripherals is still a significant opportunity, noting that “less than 50%” of those users use a mouse and “less than 30%” use an external keyboard.
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Over the past decade, he said, Logitech has grown revenue by “percent” year over year as more users use mice and keyboards, helping the company grow outside of PC unit sales. Asked about direct exposure to new PC sales, he described it as a “very small segment,” saying that marketing and innovation help drive development and adoption in the installed base regardless of the size of the PC shipment cycle.
Faber said Logitech has outgrown PCs by 300 to 500 basis points over the past decade, though not on a quarter-to-quarter basis. He attributed the outstanding performance to three main drivers:
Maximum attachment values: He said there is “8% more use of mice and keyboards” compared to a decade ago.
Advantages of market share: He said Logitech’s share of mice and keyboards has risen from about 45% a decade ago to “more than 50%” today.
Top ASPs: He said the average selling price is now “50% higher” than a decade ago, driven by “new premiums” and “successful listings.”
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On the promotions, Faber said Logitech is using them “very smartly” in competitive areas for test drives, but described promotions as a bigger part of the marketing mix than the premium and product mix.
Regarding competition from PC OEMs that assemble or sell consumables, he said Logitech respects its competitors but considers consumables as its core competency. He gave the “left mouse” as an example of a niche segmentation that might not be a priority for OEMs but would be meaningful for Logitech.
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Faber said Logitech’s current revenue mix is about 40% B2B and 60% B2C, with B2B growing at the expense of B2C “quarter after quarter.” He said the company’s goal is to move to a “50-50” balance over time, describing B2B as its main focus while emphasizing continued commitment to consumer segments.
He also pointed to collaborations across B2B and B2C, including shared technology and product access, saying Logitech serves both “15-year-old gamers” and CIOs in “70% of the Fortune 500.”
Faber said Logitech’s gaming business in China has grown materially since he joined a little more than two years ago. He described China as the largest and most sophisticated gaming market and said that Logitech has implemented a “China for China” strategy, building a multi-functional team in Shanghai with engineers, designers, and market workers. He said China’s gaming business has been growing at “20%+” for four consecutive quarters and is helping to drive global gaming performance.
He added that while the strategy began as “China’s China,” it is increasingly becoming “the China of the world” as local innovations are imported. As an example, he cited keyboards that worked well in China and are now being introduced in the US
Addressing competitive threats from Chinese manufacturers, Faber called the environment “bad,” citing “over 500” mouse and keyboard makers in China compared to “less than 10” worldwide. He said Logitech had been losing share in China in the past but it has stabilized and in the “last quarter” the share was growing again.
On manufacturing and taxes, Faber highlighted what he called Logitech’s resilient supply chain, saying the company manufactures in China and “five other countries,” including Mexico. He said Logitech could quickly move production, citing a turnaround in which US-bound products made in China dropped from 40% to less than 10% in less than a year. He said the latest rate hike was “too early to tell” about the long-term impact, adding that the 10% to 15% tariff rate for 150 days “doesn’t change things materially” compared to last week.
Faber described AI as a “huge tailwind” when applied to real customer problems. He highlighted AI-enabled features in the video conference—such as speaker framing and “smart switching” in Rally AI bars—and AI-driven two-way noise cancellation in headsets. He said this is not just a proof of concept but a product that is “shipped around the world at scale.” He also said that Logitech is “deeply integrated” with partners including Microsoft, Google, and Zoom.
On the distribution of funds, Faber said that Logitech has CHF 1.5 billion in cash and no debt. He listed priorities as investing in organic growth (including R&D and some capex), maintaining “attractive profitability” with annual increases (noting an increase of CHF 0.10 last year and which he plans to raise again), pursuing M&A where appropriate, and making share buybacks with the remaining cash. In M&A, he said the company is looking at areas around sports, video conferencing, and the personal workspace, as well as opportunities to expand in specific B2B areas such as health care, education, and government, with deals likely to be “tuck-ins.”
Faber concludes by stressing what he sees as investor misconceptions: the company’s balanced mix across B2B and B2C, its three core businesses (gaming, video conferencing, and personal workspace), and its global footprint spanning more than 150 countries.
Logitech International SA is a Swiss-headquartered company that designs, manufactures and markets a wide range of computer accessories and accessories for consumers, gamers and business customers. Founded in 1981, the company develops hardware and associated software that enable people to interact with digital devices in all work, home and entertainment settings. Logitech maintains corporate offices in Switzerland and significant operations in the United States and other regions around the world.
The company’s product portfolio includes mice, keyboards, web cameras, headsets, microphones, speakers, remote controls and other input/output devices, as well as specialty lines for gaming, streaming and video collaboration.
The article “Logitech International CEO Confirms Higher Single-Digit Growth Goal As PC Shipments Face Headwinds” was originally published by MarketBeat.
