Logitech boosts spending on AI and gaming for growth
Logitech CEO Hanneke Faber plans to increase spending on product development and marketing to capture growth in AI and gaming. The company expects sales to rise by up to 4% this year despite logistical challenges and supply disruptions in the Middle East.
LOGITECH INTERNATIONAL-REG will increase product development and marketing spending this year, targeting sales growth of 2% to 4% reaching $1.215 billion. The expansion follows cost-cutting to offset trade tariffs and recent supply disruptions in the Middle East. AI-enabled devices and gaming demand will be central to protecting margins against a $15 million logistics headwind.
CEO Hanneke Faber told Reuters that the Switzerland and United States based hardware maker has the financial base to invest. Logitech plans to keep total operating expenses toward the top end of its 24% to 26% range. Research and development spending will rise to 6% of sales, while marketing costs will exceed 16%.
