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Logitech Lowers Google TV Revue Price

Discussion in 'More News from Your Google TV News Team' started by Rickaren, Apr 29, 2011.

  1. Rickaren

    Rickaren New Member Staff Member

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    Logitech to Cut Google TV Set-Top Box Price by 17% to Lure Users

    By Chiara Remondini - Apr 28, 2011

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    Logitech International SA, the world’s biggest maker of computer mice, will cut the price of its Revue set-top box for Google Inc. Web television offering by 17 percent to attract buyers after a “slow start.”

    Logitech will lower Revue’s price in May to $249 from $299, the company said today. Sales of the set-top box and other peripherals for Google TV were $5 million in the quarter through March, a “disappointing” figure according to Bank Vontobel analyst Michael Foeth.

    “We want to reach more people and technology prices only go one direction, that is down,” Chief Executive Officer Gerald Quindlen said in an interview in Zurich today. “We don’t think the issue with the product is price but by making it more affordable we’ll make more people consider it.”


    The Romanel-sur-Morges, Switzerland-based company started selling Logitech Revue in the U.S. in the last quarter of 2010. Google aims to bring the Internet to living-room TVs and generate fresh advertising sales by creating the leading search tool for TV viewers, with software providing links to TV listings, movies, online video services, music and photos.

    Since the launch of Revue, Logitech’s sales from the set- top box and related devices were $27 million, compared with a target of $40 million for the first six months of sales, the CEO said today. Logitech reiterated that it’s “still bullish” about the long-term potential of the Google TV platform.

    Upgrade

    There will be a “major” software release by Google this year to upgrade the system with “lots of new features and functionalities,” Quindlen said. He declined to comment on the timing, adding that it won’t be “a whole lot longer.” The upgrade will make the user interface easier to use as the first version was too complicated, the CEO said.

    “The real opportunity will only come when we get the user experience exactly right. Once we do that we’re going to expand more broadly in the U.S. and in Europe,” Quindlen said.

    Sony Corp. began selling TVs and Blu-ray players equipped with Google TV in October. Samsung Electronics Co., the largest television maker, may use Google TV software in home- entertainment devices based on its own chips, a person with knowledge of the plans said in February.

     
    Last edited: Apr 30, 2011
  2. galfert

    galfert Active Member

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    Uggghhh....I hope they don't screw up the interface. I'm all for change and all but I'm against simplification that removes functionality. Honeycomb on tablet is a nice upgrade without sacrificing functionality. If they dumb down Google TV's user interface it might suck. Lets hope the upgrade is more like Honeycomb rather than oversimplification. At least ofter Android experienced users the option to modify the interface with more features.

    And $250 is still a high price. $199 would have been better. I paid $250 during the 2010 Holiday season on Amazon. I wish they lowered the TV Cam price.....I still don't have one....waiting for a deal....I might get a couple used ones via eBay.

    Edit: actually I just checked Amazon and the price is $230 with free shipping. That is now starting to look better. Still needs $199 price point and Android Market and I think this platform would take off strong and leave Apple TV, Roku, Boxee in the dust. Negociations with network TV companies wont be necessary....App Market will fix that on its own....as long as we can side load.
     
    Last edited: Apr 29, 2011
  3. Rickaren

    Rickaren New Member Staff Member

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    I was thinking the same thing. When the list was $299 you could buy the unit discounted for $250, so if the markup remains the same we should see it available for $199.00. For sale at less than $200, this should start increasing sales and I don't understand why the accessories have not been discounted in this time of slow sales, but maybe that will change too, in the future.
     
  4. alphawave7

    alphawave7 Moderator Staff Member

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    I'm sorry, but ""We don't think the issue with the product is price but by making it more affordable we'll make more people consider it." is simply meaningless double-speak. Unless Gerald meant there are OTHER issues he's not mentioning...
     
  5. Rickaren

    Rickaren New Member Staff Member

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    All electronics have a sweet spot on price to become a "main stream" product. The first wave is always the new adapters which I'm one. They expect to pay a higher price to experience the newest, best thing. Many like myself want to enjoy that new product, whatever it is, and they do. When that wave of buyers no longer exists and the manufacturer has worked all the bugs out of that item thanks to the "Early Adapters" that may involve software or updates or modifications and production issues, they are ready for mass production and sales. For Google TV it may be $99.99 in about a year. The average Joe always says "wait a year or so and I buy that when the price comes down". Joe is right, it may fall 50% like many electronics, but they don't have the joy to enjoy it for that period as "Early Adapters". I usually feel I get my money's worth with my early purchases (VCR,DVR,DVD,Voom, HD TV,Flat Panel TVs, Large Screen Computer Monitors, and so on) because I use them with out waiting a year or so for the price to drop. There are many "Early Adapters" like myself that have both DISH & DirecTV and OTA TV for years, but not your average Joe. That is fine since Joe wouldn't record five shows at the same time or store them and we seldom watch live TV.
     
  6. alphawave7

    alphawave7 Moderator Staff Member

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    Oh yeah, Rick..I know ALL too well the cost of early adopteritis! :p The statement has little to do with that, imho. Let's take the segments separately:
    1) "We don't think the issue with the product is price..."
    Okay, then what IS the issue with the product, if it is not price? Are we to assume Logitech thinks the product IS appropriately priced? If so, do they think they are right, and the consumer is wrong, on the perceived value the product represents? But then the statement above is contradicted:
    2) "but by making it more affordable we'll make more people consider it". Spin. He means by LOWERING PRICE (more affordable) people might BUY IT(consider it). What this says is folks are NOT buying at this price (regardless of what Logitech 'thinks') because the MSRP/whatever is too high for the value presented...I don't know how anyone could reach a different conclusion. 1) is in direct conflict with 2).

    The other possibility we are left to speculate is the writer short shrifted us on the content of his statements, and he DID actually describe what he felt were the product's 'issues' (excuses) for poor sales, in the form of poor adoption due to an unconvinced or uninformed customer, poor advertising, poor product/service rollout, premature software and GUI, etc. These points also weigh into the overall sales of these units, not just price...but the article fails to mention these, if he said them. I'm inclined to think he did not, and suspect he really KNOWS it's priced too high and doesn't represent a good value (which is what many observers have been saying all along) and simply uses doublespeak to save face on an improperly priced widget, which he couched by saying 'we want to reach more people (doublespeak for 'sell more units') and technology prices only go one direction, that is down".
    He should have simply said, 'inventories are stagnant at this price level, so were dropping the price to stimulate sales'. Naw...much too easy and certainly more boring than being all crafty. :p
     
  7. Rickaren

    Rickaren New Member Staff Member

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    Android's TV Experiment Languishes, Logitech Only Sells ~15K Units in Q1
    Jason Mick (Blog) - April 29, 2011






     
  8. Rickaren

    Rickaren New Member Staff Member

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    4/29/2011

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  9. Rickaren

    Rickaren New Member Staff Member

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    Google TV: Ready For Reboot

    05/01/2011


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    Google TV... it really is a black box.

    Google TV is one of those products that has huge potential... but so far hasn't come close to achieving it. Logitech has been having a rough time selling it, as evidenced by this report: Logitech only managed to sell $5 million worth of Google TV in their last quarter. Not good, especially when they had expected to sell $18 million worth... and they had sold $22 million in the previous quarter.

    The product is over-engineered and under-interfaced, from what I can tell. It's complicated and hard to use, not exactly the kind of features you want in a product for consumers. Plus, the early adopters who are the likely buyers right now no doubt heard all about Google's plan to reboot the device, which helped kill sales.

    Supposedly Google TV will be getting its upgrade soon, adding in the long-awaited App Store. No word if they will actually revamp the interface so mere mortals can figure it out, but that would be nice. Look, guys, you have some unknown amount of time here to get it fixed, because sooner or later Apple is going to get tired of the Apple TV "hobby" and turn it into a real moneymaker. If any company knows how to build a slick user experience, it's Apple. If they can put some sizzle into the TV screen, they'll own the market. Google needs to get there before Apple to capture some mind share while they refine the interface.


    I still expect Apple to make their move before the end of this year. I don't know if this means a new version of Apple TV, but it may have something to do with the rumored introduction of their cloud computing offerings. Most people figure those are aimed at iPhones, and they are right in the near term. But I think Apple is aiming to own the family room too, and all of these initiatives can help them with that market.

    Hmmm... I wonder if Amazon will enter the set-top box market, since Android is open to all...

     

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