1 week Ago By David Richards
Logitech is the first of the big accessory Companies to pull back on their forward forecasts with the Swiss based Company who hold significant market share in the US, withdrawing their forecast citing continued uncertainty stemming from U.S. President Donald Trump’s trade policies.
Despite the 30% fall in share value during a turbulent the past 30 days, the Company overnight confirmed its current fiscal year 2025 outlook of being between $4.54 billion and $4.57 billion in net sales, representing year-over-year sales growth of 5.
4%. Over the past decade, the S&P Technology Hardware Industry Index reported a total return of 145%, or 9.4% per year as of March 2025.
While this was lower than the S&P Software & Services Industry Index, which returned 13.5% per year, things have changed recently. Over the last five years, hardware has done better, with nearly 18% yearly returns compared to 15.
6% for software. Logitech MX Creative Console. A similar pattern was seen over the last three years, though in the past year, software has started to perform better again.
Deloitte’s December 2024 report, Hardware is Eating the World, highlighted the return of hardware as a key part of technology growth. After years of software leading the way, hardware is now becoming more important, especially with AI-powered devices. Enterprise laptops, once seen as simple tools, are now improving with AI features.
Leading computer hardware companies are promoting AI-powered PCs as a way to prepare for the future, lower cloud costs, and improve data privacy. These devices, with offline AI models, can speed up tasks like image creation and text analysis, helping workers be more productive. As a result of a surge in hardware sales consumers and B2b businesses are buying more accessories including cables, battery back up and travel accessories.
Companies such as Logitech are seen as being in a position to benefit from the return of hardware sales in both conference rooms and with individuals. Vivek Mohindra, senior vice president of corporate strategy at Dell Technologies, points out that 30% of PCs worldwide are outdated and lack neural processing units (NPUs) to take advantage of AI improvements. Deloitte claims that AI PCs are expected to make up 40% of PC shipments by 2026, and AI-powered smartphones are also becoming more common.
One analyst said “When hardware sales grow so do accessories and dependant on what happens with Trumps tariffs there is still going to be a big market for accessories and conference call technology”..
