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January 28, 2013

Logitech Debates Dumping Video Conferencing

By Robbie Pleasant
TMCnet Contributor

Sometimes survival means cutting off a rotting limb, and there’s a possibility that Logitech (News - Alert) will be doing just that.

Within 90 days, Logitech will decide whether or not to sell the video-conferencing arm it purchased in 2009 at a loss of more than half its buying price – or to hold onto it.

While the video conferencing market remains a battleground for companies such as Cisco and Polycom, Logitech’s LifeSize (News - Alert) unit failed to get a strong enough foothold to provide them with enough competition to last.

But there are still potential buyers for LifeSize, along with Chinese companies ZTE (News - Alert) and Huawei, so there is still a chance for LifeSize yet.

Still, Logitech is focusing on moving away from video conferencing, along with its remote controls and digital video security, to focus more on products for smartphones and tablets, as well as video gaming products.

"It's important to note we're going to shrink the company first and make it more profitable, and then focus on areas where we think we can grow," said Bracken Darrell, Logitech’s CEO. "PC gaming is an area we haven't grown in because we didn't launch any new products, but we're going to do that now."

Logitech’s shares have taken a hit in recent years, with the peripherals it specializes in being less useful with the rise of tablets and smartphones.

However, it still has plenty of products that sell well enough to keep it afloat, such as its wireless speakers and iPad keyboard cover.

So the question is: does Logitech’s LifeSize video conferencing unit stand a chance, or is it a sinking ship? If it can hope to compete in the market, and provides enough profit to keep it going, then there might be some hope left.

But if Logitech feels that it has outlived its usefulness, and is just deadweight to the company, perhaps another can find a better use for it.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Braden Becker


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