Logitech 2013 Annual Report Download - page 106

In the third quarter of fiscal year 2013, we changed the product category classification for a number of our
retail products in an effort to help investors more clearly track the progress of our various product initiatives.
Products within the retail product categories as presented in fiscal years ended 2012 and 2011 have been reclassified
to conform to the fiscal year 2013 presentation, with no impact on previously reported total net retail sales. During
the third quarter of fiscal year 2013, we identified a number of product categories that no longer fit with our current
strategic direction. As a result, we made a strategic decision to divest our entire Retail-Remote product category
and our digital video security product line, included within our Retail-Video category, and we plan to discontinue
other non-strategic products, such as speaker docks and most console gaming peripherals, by the end of fiscal
year 2014.
Retail Pointing Devices
Our Retail Pointing Device category is comprised of PC-related mice, trackpads, touchpads and presenters.
Retail sales of Pointing Devices decreased 7% while retail units sold decreased 4% in fiscal year 2013,
compared with the prior fiscal year. The continued weakness in the global PC market was a major factor in the
sales declines in this category across all regions except the Asia Pacific region where sales remained constant. The
primary weakness during fiscal year 2013 was in our low-end product offerings, which experienced a 12% decline,
offset in part by increases of 9% in our mid-range and 3% in our high-end product offerings. Sales of all cordless
mice decreased 5%, while units sold increased 1% in fiscal year 2013 compared with the prior fiscal year. Corded
mice sales decreased 16%, while units sold decreased 12% in fiscal year 2013 compared with the prior fiscal year.
By geography, the Americas region sales and units sold decreased by 9% and 4%, and the EMEA region sales and
units sold decreased by 9% during this period. The Asia Pacific region sales were flat and units sold increased by
2% during this period. China sales and units sold decreased by 8% and 2% during this period.
Retail sales of Pointing Devices decreased 1%, while retail units sold increased 7% in fiscal year 2012
compared with fiscal year 2011. The stronger growth in units relative to sales reflects the success of our value-priced
offerings, particularly in the Asia Pacific region, where sales in dollars increased 21% and units sold increased 33%
in fiscal year 2012 compared to fiscal year 2011. China was a strong contributor in the Asia Pacific region with
sales and units sold increases of 54% and 50% during this period. In our EMEA and America regions, sales in
dollars decreased 2% and 3% in fiscal year 2012 compared with fiscal year 2011, while units sold increased 3% and
decreased 4%. Sales of cordless mice increased 5%, while unit sold increased 17% in fiscal year 2012 compared
with fiscal year 2011. The stronger growth in units sold was driven by the sales of our value-priced cordless
notebook mice, including the Wireless Mouse M185 and the Wireless Mouse M315. Sales of corded mice decreased
14% while units sold decreased 5% in fiscal year 2012, compared with fiscal year 2011. The primary weakness of
our pointing device category during fiscal year 2012 compared to fiscal year 2011, was in our high-end product
offerings, which experienced a 16% sales decline, followed by our mid-range offerings, which experienced a 7%
sales decline, offset in part by an increase of 9% in our low-end offerings.
Retail PC Keyboards & Desktops
Our Retail PC Keyboard & Desktop category is comprised of PC keyboards and keyboard/mice combo products.
Retail sales of PC Keyboards & Desktops increased 1% during the year ended March 31, 2013, compared with
the prior fiscal year, while units sold decreased 1% during this period. Although this category was affected by the
continued weakness in the global PC market, we managed to achieve a modest sales increase in this category due
to continued development of new, innovative products led by the Logitech Wireless Touch K400, and from other
new products, including the Logitech Washable Keyboard K310, Logitech Wireless Combo MK240, Logitech
Bluetooth Illuminated Keyboard K810 and the Logitech Wireless Solar Keyboard for Mac. Sales of corded and
cordless desktops decreased 9% and remained flat in sales and decreased 7% and increased 4% in units sold during
fiscal year 2013 compared with the same period in the prior fiscal year. Sales of corded and cordless keyboards
decreased 5% and increased 28% in sales and decreased 11% and increased 38% in units sold during fiscal year
2013 compared with the same period in the prior fiscal year. By geography, we experienced growth in the Americas
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