On Wednesday, April 30, Logitech International, a leading global computer peripheral manufacturer, announced that it would be shifting part of its production chain from China to other countries that it exports to the United States in response to the high tariffs imposed on Chinese goods by the US.
The company’s CEO, Hanneke Faber, stated, “We have established a highly diversified manufacturing network globally, putting us in a favorable position. While I wouldn’t say shifting production capacity is easy, our team is swiftly moving to mitigate the impact of tariffs.”
Facing challenges amid the US-China trade war, Logitech plans to diversify its supply chain by moving production from China to other East Asian countries, including Vietnam, Taiwan, Thailand, and Malaysia.
Faber emphasized, “We will be proactive, while tightly controlling costs and remaining flexible in our response.”
Currently, all of Logitech’s products are manufactured outside the US, with the US being its largest market, accounting for 35% of its sales. Approximately 40% of the products sold in the US are manufactured in China. The Swiss company plans to reduce this production proportion to 10% and intends to raise prices by 10% for products sold to the US.
As Logitech unveiled this plan, its quarterly financial report for the end of March showed a 16% decline in Non-GAAP Operating Profit to $133 million, falling below analysts’ expectations of $134 million. Quarterly sales remained flat at $1.01 billion, missing analysts’ forecasts of $1.03 billion.
Headquartered in Lausanne, Switzerland, Logitech produces computer peripherals and software, with its main products sold in the US including mice, keyboards, and webcams.
Despite the challenges, industry analysts are optimistic about Logitech’s strategy. Michael Foeth, an analyst at Vontobel Bank, emphasized the company’s competitive strength and flexible production layout, stating, “With highly flexible production settings and a convincing track record, Logitech possesses strong competitiveness during difficult times.”
(Translated and rewritten with reference to relevant reports by Reuters)