Logitech caught in mousetrap

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The No.1 maker of computer mice is fighting to increase its share of computer accessories market in an increasingly mouse-less world.   (Reuters) The No.1 maker of computer mice is fighting to increase its share of computer accessories market in an increasingly mouse-less world. (Reuters)
SummaryThe No.1 maker of computer mice is fighting to increase its share of computer accessories market in an increasingly mouse-less world.

gesture and speech communication.

New multi-touch systems currently under development at universities and research labs in the United States and elsewhere could soon allow users to operate computer by gestures transmitted via a camera and video projector.

Logitech is simply non-existent in this field, said Kepler Capital Markets technology analyst Cyrill Pluess, meaning the company once again is running the risk of missing out on new mega trends.

Asked about the new technology, Darrell said it was too early to tell how it would be applied in workspaces and homes.

I by no means think the mouse is dead. It's alive and well and will be for a long time. Logitech has some reason to be cautious. The company had its fingers burnt leaping onto supposedly hot new technologies such as its access system for Google-TV, which proved a costly flop after Logitech sank more than $100 million into it.

COST-CUTTING

The company has announced a cost-cutting programme that includes plans to shed 450 jobs out of a total workforce of 3,300, which analysts say is a good start toward a better business model.

I think they are on a good way to bring their cost base in line with their changed sales prospects, ZKB's Mueller said.

Given its cash reserves of more than 360 million Swiss francs ($387.74 million), Logitech should have some staying power, but analysts think further cuts are unavoidable.

And though analysts predict that there will still be a market for accessories, the future Logitech may look quite different from today.

We are learning and continuing to learn about risk management and taking bets. What we can't do and what we won't do is stop making bets, he said.

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