Logitech slashes Google TV prices
The early reviews on Google TV haven’t been anything to celebrate about. One of the biggest investors in the product, Logitech was forced to tell investors that it’s preparing to downgrade the price of its Revue Google TV set-top box to $99 down from $249. The price cut as Logitech states in its investor slide was intended to “remove price as a barrier to broad consumer acceptance.”
Anyone who understands supply and demand can tell that it means the product isn’t doing too well in the market. In fact, more people were returning the Revue set-top box for Google TV than actually buying them.
According to Logitech’s financial results, “Sales of Logitech Revue were slightly negative during the quarter, as returns of the product were higher than the very modest sales.”
Already, names at Logitech are starting to fall. Logitech CEO Gerald Quindlen who was one of the big proponents of Google TV has stepped down after the company released its financial results this week. Logitech Chairman Guerrino De Luca has stepped in as the acting CEO to fill the void. It can’t all be put on Google TV’s disappointing results, give the financial results, Quindlen’s resignation was certainly prompted by disappointing revenue from Logitech’s core and European business, which resulted in a net loss of $30 million for its first quarter of fiscal 2012.
To add insult to injury, earlier this month, Universal Electronics filed suit against Logitech for infringing 17 patents that affect Logitech’s Harmony remotes and the Logitech Revue.
It’s been a slow start for Google TV without question, but Logitech remains optimistic that Revue sales will pick up later this summer once Google releases the next version of its Google TV platform. The new release is expected to bring access to the Android Market and will include other product improvements.
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