Quantcast

Logitech CEO Stepping Down

Discussion in 'More News from Your Google TV News Team' started by Rickaren, Jul 28, 2011.

  1. Rickaren

    Rickaren New Member Staff Member

    Joined:
    Nov 20, 2010
    Messages:
    1,167
    Likes Received:
    50
    Trophy Points:
    0
    Location:
    Indiana, Logitech Revue
    Logitech CEO steps down after weak Q1, Google TV-powered Revue now $99
    07/28/2011


    Logitech CEO Gerald Quindlen announced that he’s stepping down from his role at the company this morning, following a sluggish first quarter earnings report.


    Slow sales of Logitech’s Google TV Revue set-top box, which Quindlen was a major supporter of last year, were likely one reason for his move. The company announced this morning that it will be cutting the Revue’s price from $249 to $99 to spur sales.


    The Revue price drop has been a long time coming. Had Logitech realized sooner that nobody wanted to pay $249 for the Revue when sub-$100 options like the Apple TV and Roku devices existed, Quindlen may have managed to hold on as executive chief. I don’t blame the guy for throwing his weight behind Google TV — I think it still has the potential to be the best long-term solution for combining web video and traditional TV. But Google has been slow to update the software, and the $249 Revue price point just didn’t appeal to casual consumers.


    Google announced months ago that it will finally be updating Google TV with Android 3.1 this summer, bringing with it access to apps and the Android Market. A thriving third-party ecosystem will inevitably make Google TV a more compelling option, especially now that the Revue box will be $99.


    Logitech announced a net loss of $29.6 million for the first quarter of fiscal year 2012, compared to last year’s $20 million net income. The company has lowered its sales outlook for the fiscal year from $2.6 billion to $2.5 billion, and lowered its target for operating income from $185 million to $143 million. Logitech chairman and former CEO Guerrino De Luca will serve as acting CEO until a replacement for Quindlen is found.



    SOURCE
     
  2. Rickaren

    Rickaren New Member Staff Member

    Joined:
    Nov 20, 2010
    Messages:
    1,167
    Likes Received:
    50
    Trophy Points:
    0
    Location:
    Indiana, Logitech Revue
    Google TV update: more Logitech Revue boxes returned than sold in Q1, price dropping to $99

    July 28, 2011


    [​IMG]
    The Google TV-based Logitech Revue may go down in history as the product that forever changed the company. After a dismal Q1 in which the company lost $29.6m and “very modest sales” of the Revue were exceeded by returns of the product, CEO Gerald P. Quindlen is leaving and the Revue itself is being slashed below cost to just $99 — a move that’s costing Logitech some $34m in one-time charges. Logitech says it’s taking the hit in order to “remove price as a barrier to broad consumer adoption” of Google TV and increase the installed base, although we’re not sure the lower price will fix blocked content and sluggish performance. What’s more, we’ve long had the sense that the planned late-summer Google TV Honeycomb update with Android Market support will come with updated (and possibly ARM-based) hardware, so we’ll see if Logitech decides to stick with the Revue or move on to something new. All in all, it seems like the next few months hold serious changes for both Logitech and the Google TV platform — we’ll see what happens.

    SOURCE
     
  3. Rickaren

    Rickaren New Member Staff Member

    Joined:
    Nov 20, 2010
    Messages:
    1,167
    Likes Received:
    50
    Trophy Points:
    0
    Location:
    Indiana, Logitech Revue
    July 28, 2011


    Google TV continues to flop, announces $99 price drop

    [​IMG] Logitech posted its first quarter financial today, and Google TV is a large part as to why the company posted losses of $30 million. But, the decline of Google TV as a relevant product on the market isn't Google or Logitech's fault. The system premiered to a ton of buzz: With its ability to create a space in where cable TV and Internet browsing becomes functional with personalized applications, it deserved to.


    Unlucky for Google TV, it was ahead of its time. People that bought the device began to use it as a replacement for cable instead of an extension of it. The very thing that made the system so great is what is causing its perceived irrelevancy by consumers. And now, Logitech has been forced to drop the devices price from $249 to $99.



    Big media pulled the plug on Google TV by restricting access to all the online viewing locations. Google TV now has been returned more times than it has been purchased. And that isn't its first price drop: The product was originally retailed at $299; it's now at a third of that price.


    Companies drop product prices for a multitude of reasons. Nintendo recently dropped their DS Lite consol from $130 to $99, not because of poor sales, but because the highly successful product has been on the market since 2006 and updated versions have come out. Anyone who would've bought the console at the before price has, and to spike sales back up, Nintendo needed to adjust the price of the original device. This is not Google TV's issue. The product is sinking and it's causing distribution headaches as it scrambles to recoup its losses.



    Logitech seems to be in between a rock and a hard place. All it can do is try and get rid of its stock of Google TVs, but without online streaming, the intended purpose of the device, it is just a glorified Netflix-playing console, and no one wants or needs that, even at $99.


    SOURCE
     
  4. thewilliams1

    thewilliams1 New Member

    Joined:
    Mar 11, 2011
    Messages:
    30
    Likes Received:
    1
    Trophy Points:
    0
    1. Market
    2. Root
    3. Profit
     
  5. danger-rat

    danger-rat Moderator Staff Member

    Joined:
    Oct 24, 2010
    Messages:
    208
    Likes Received:
    10
    Trophy Points:
    0
    Absolutely!
    If I had root or market I would've bought several of these...

    This looks promising though!
    http://www.googletvforum.org/forum/logitech-revue/2378-gtvhacker-say-they-can-get-honeycomb-any-revue.html
     
    Last edited: Jul 28, 2011
  6. Rickaren

    Rickaren New Member Staff Member

    Joined:
    Nov 20, 2010
    Messages:
    1,167
    Likes Received:
    50
    Trophy Points:
    0
    Location:
    Indiana, Logitech Revue
    Logitech slashes Google TV prices
    July 28, 2011


    The early reviews on Google TV haven’t been anything to celebrate about. One of the biggest investors in the product, Logitech was forced to tell investors that it’s preparing to downgrade the price of its Revue Google TV set-top box to $99 down from $249. The price cut as Logitech states in its investor slide was intended to “remove price as a barrier to broad consumer acceptance.”


    Anyone who understands supply and demand can tell that it means the product isn’t doing too well in the market. In fact, more people were returning the Revue set-top box for Google TV than actually buying them.


    According to Logitech’s financial results, “Sales of Logitech Revue were slightly negative during the quarter, as returns of the product were higher than the very modest sales.”

    [​IMG]Already, names at Logitech are starting to fall. Logitech CEO Gerald Quindlen who was one of the big proponents of Google TV has stepped down after the company released its financial results this week. Logitech Chairman Guerrino De Luca has stepped in as the acting CEO to fill the void. It can’t all be put on Google TV’s disappointing results, give the financial results, Quindlen’s resignation was certainly prompted by disappointing revenue from Logitech’s core and European business, which resulted in a net loss of $30 million for its first quarter of fiscal 2012.


    To add insult to injury, earlier this month, Universal Electronics filed suit against Logitech for infringing 17 patents that affect Logitech’s Harmony remotes and the Logitech Revue.


    It’s been a slow start for Google TV without question, but Logitech remains optimistic that Revue sales will pick up later this summer once Google releases the next version of its Google TV platform. The new release is expected to bring access to the Android Market and will include other product improvements.


    SOURCE
     

Share This Page