LAUSANNE, Switzerland (Reuters) – Logitech International aims to grow faster in the future by expanding its customer base into sectors such as education and healthcare, as well as making greater use of artificial intelligence, says Haneke Faber, chief executive officer. Chief Executive Officer (CEO) said on Tuesday.
The maker of computer mice, keyboards and video conferencing broke a two-and-a-half year decline in sales and posted its first quarterly increase.
The Swiss-U.S. company, which suffered a slump after a pandemic-induced boom, is now targeting sales growth of 0% to 2% over the next 12 months, with growth accelerating thereafter.
“We are talking about accelerating organic growth to mid-single digits after this fiscal year,” Faber told Reuters in an interview at Logitech's headquarters in Lausanne.
Faber, who took over in December 2023, said Logitech wants to expand its consumer base and encourage customers to buy more premium versions of its products, including speakers and webcams.
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Up until now, Logitech has focused primarily on products for office workers, Faber said.
“Most people in the world don't work in offices. They work in retail, education, construction and manufacturing,” Faber said. “We have room to play in all of these places, which could potentially double the total market we can play.”
Education was one of the areas covered, including the production of headphones suitable for children.
Faber said there is an opportunity to double the addressable market in the gaming market by adding more products for console and mobile phone players.
Logitech had also been looking to expand sales to businesses, but Faber said the market is currently “challenging.”
Still, Faber said the shift to hybrid work post-pandemic is a trend that is “here to stay.”
For example, more products powered by artificial intelligence will be launched to give users faster access to generative AI systems like ChatGPT.
Other products include AI-powered video conferencing software that allows the camera to focus on the person speaking while ignoring background noise.
Faber said another acquisition could happen because Logitech has $1.5 billion in cash, but he said he is in no rush to make a deal.
“We have firepower, but that doesn't mean I'm going to be trigger-happy,” she said.
(Reporting by John Reville; Editing by Emelia Sithole-Matarise)
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