Logitech CEO: Costs and AI Opportunity
Logitech CEO Bracken Darrell explained the limited impact of the global chip shortage and cost increases on the company. Darrell noted that AI-focused spending is keeping corporate demand alive and that the slowdown in PC renewal cycles presents an opportunity.
Prepared Approach to Chip Shortage and Cost Increases
Logitech CEO Bracken Darrell shared his views in an interview with Bloomberg regarding the chip shortage and cost increases affecting the sector. Darrell stated that the shortage did not directly affect most of the company, only a small portion of video conferencing products were affected.
PC Market Slowdown Seen as an Opportunity
Bracken Darrell argued that although rising personal computer prices are affecting consumer behavior, this creates an opportunity for Logitech. Even if users cannot buy a new PC, they may want to upgrade their existing systems for better efficiency or a better gaming experience. Darrell pointed to growth potential, noting that there are more than 1.5 billion active PCs worldwide and less than half of these users use an external mouse.
Diversification in Manufacturing and Tariffs
CEO Darrell announced that the company has successfully completed its goal of diversifying its manufacturing network. While 40% of products going to the US in April 2025 came from China, by the end of December 2025 this rate was reduced to below 10%.
Corporate Demand and AI Dynamics
On the corporate (B2B) side, which accounts for about 40% of the company's business volume, demand is growing in double digits and is stronger than the consumer side. Bracken Darrell noted that businesses continue to invest in technology and employees despite allocating resources for efficiency and AI investments.
