Logitech has made progress in shifting production from China, CEO says
Logitech products, such as keyboards and mice, produced in China and bound for the United States, face U.S. tariffs of up 30%. That level could change depending on the outcome of ongoing talks.
The company is seeking by the end of this year to reduce the amount of its products made in China to 10% of the total imported by the United States. Already it has fallen from 40%.
"We are a little bit better than 30% now. We are well on track," Faber told Reuters on Wednesday after Logitech reported its first-quarter results.
It is switching production lines to Malaysia, Mexico, Taiwan, Thailand and Vietnam - countries where it works with contract manufacturers.
"The manufacturing diversification that we've been doing out in Asia and in Mexico is exemplary," she added. "We're not seeing any material cost increases from moving stuff around and that's quite a feat."
Logitech has also increased its prices in the United States by 10% to offset the impact of tariffs, but says it does not plan further price hikes.
Faber also said the company would continue to invest in new products and seek to control costs as it adapts to economic uncertainty.
"The tariffs are not a small thing, but we've been super agile, changing plans at a moment's notice," Faber said. "That's what we'll continue to do."
The Swiss-U.S. company has also benefited from an increased focus on business customers that has included setting up specialist sales teams and launching products.
Its sales of video conferencing equipment grew at more than double the company's overall rate.
Faber said the business-to-business operation that caters for offices, hospitals and schools was "a big strategic priority".
"Logitech is a consumer company, but we've quietly built about 40% of our business into a B2B business. "We're still relatively young, so we are building up our capabilities."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
23 minutes ago
- Reuters
Oil falls as OPEC+ output hike adds to oversupply concerns
NEW YORK/LONDON, Aug 4 (Reuters) - Oil prices fell to their lowest in a week on Monday after OPEC+ agreed to another large output increase in September, adding to oversupply concerns after U.S. data showed lacklustre fuel demand in the top consuming nation. Brent crude futures fell 43 cents, or 0.6%, to $69.24 a barrel by 11:39 a.m. ET (1539 GMT), while U.S. West Texas Intermediate crude declined by 48 cents, or 0.7%, to $66.85 a barrel. Both contracts were down more than 2% earlier in the session and hit the lowest in a week, after declining close to 3% on Friday. The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day (bpd) for September. The latest in a series of accelerated output increases aimed at capturing market share was in line with market expectations and marks a full and early reversal of the group's largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of global demand. While the group cited healthy market fundamentals to back its decision, data released by the U.S. government last week showed the weakest gasoline demand in May, the start of the country's summer driving season, since the COVID-19 pandemic of 2020. The data also showed U.S. oil production at a monthly record in May, adding to global oversupply concerns. Oil traders are now hedging for the possibility of further supply increases from OPEC+, with potential discussions to unwind a further 1.65 million bpd of cuts at the group's next meeting on September 7 adding pressure to oil prices. "OPEC+ retains a substantial amount of spare production capacity, and markets are now watching closely to see whether the group will tap into it," StoneX analyst Alex Hodes said. "So far, there are no clear signals that OPEC+ intends to deploy this additional capacity, but the possibility remains on the table," he added. Analysts at Goldman Sachs expect that the actual increase in supply from the eight OPEC+ countries that have raised output since March will be 1.7 million bpd because other members have cut output after overproducing. Investors also continued to digest the impact of the latest U.S. tariffs on exports from dozens of trading partners and remain wary of further U.S. sanctions on Russia. U.S. President Donald Trump has threatened to impose 100% secondary tariffs on Russian crude buyers as he seeks to pressure Moscow into halting its war in Ukraine. Trump on Monday said he will substantially raise tariffs on India over its purchases of Russian oil, after two Indian government sources told Reuters over the weekend that the country will keep buying oil from Moscow despite Trump's threats. That helped limit oil's losses. About 1.7 million bpd of crude supply will be at risk if Indian refiners stop buying Russian oil, ING analysts said in a note.
Reuters
24 minutes ago
- Reuters
Trump: will 'substantially' raise tariffs on goods from India over Russian oil purchases
WASHINGTON, Aug 4 (Reuters) - U.S. President Donald Trump said on Monday he will substantially raise tariffs on goods from India over its purchases of Russian oil. "India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine," Trump said in a post on Truth Social. "Because of this, I will be substantially raising the Tariff paid by India to the USA." He did not elaborate on what the tariff would be. India's trade ministry did not immediately respond to a request for comment. Trump last week said he would impose a 25% tariff on goods imported from India and added that the world's fifth-largest economy would also face an unspecified penalty but gave no details. Over the weekend, two Indian government sources told Reuters that India will keep purchasing oil from Russia despite Trump's threats. The sources did not wish to be identified due to the sensitivity of the matter.
Reuters
24 minutes ago
- Reuters
India's Tata Capital files for IPO
Aug 4 (Reuters) - Tata Sons-backed India's Tata Capital has filed for an initial public offering, draft papers showed on Monday.
