One of the most recognisable computer mice producers is to move away from the sector, citing declining demand for PC accessories.
Reuters reports that Logitech has recorded a 34 per cent drop in operating profits for the year quarter ending March, falling to $14.5m. Net sales were down 4.7 per cent to $467.2m.
As a result it is to move away from low-margin products such as its famed PC mice and instead increase it focus on streaming music and video accessories.
Its white label mouse business declined 26 per cent in the period. By contrast, newer growth categories climbed 45 per cent. Wireless Bluetooth speakers are now its best-selling product line.
Chief executive Bracken Darrell described the strategic alteration as the simplifying of our story”. He also warned that currency declines will result in price increases on its products this quarter. In Europe this will equate to a hike of around 11-13 per cent.
UPDATE: Logitech has told MCV that it is only its third-party manufacturing that is affected by the change,
"To clarify, Logitech will continue its commitment to designing the world’s best mice," a spokesperson said. "However, we will no longer be manufacturing mice for third-party PC vendors."