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."
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