Logitech 2006 Annual Report Download - page 74

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offerings to include a wide range of personal peripherals for the PC. Logitech is a worldwide leader in radio-
based cordless input devices, offering a comprehensive selection of cordless keyboards, mice and gaming
controllers. The Company also has become a leader in the PC webcam market. In addition, Logitech has emerged
as a leading provider of multimedia speaker systems and PC headset products. Further, working with industry
partners, the Company is a pioneer in the area of digital writing.
Logitech also produces personal peripherals for platforms such as gaming consoles, mobile entertainment
and communication devices, and home entertainment systems. The Company produces controllers for the popular
gaming consoles and supports features for specific games. Logitech’s product offerings for gaming consoles also
include speakers, headsets and other accessories. For mobile phones, Logitech offers both Bluetooth mono
headsets and stereo headsets for communication and entertainment on the new generation of music phones. For
mobile entertainment platforms, Logitech offers complementing devices for iPod as well as other digital music
players, including portable speakers, wireless headphones and noise canceling headphones. For home
entertainment systems, Logitech offers a line of advanced remote controls that are designed to provide simple,
intuitive control of even the most elaborate entertainment system, as well as wireless music systems that enable
consumers to stream their digital music from either the PC or iPod directly to the stereo or home theater system.
Competitive Strengths
The Company believes its key competitive strengths include:
Product Definition, Technology and Industrial Design Excellence
Logitech understands the balance between features and complexity, functionality and style, price and
performance. The Company believes its ability to produce world-class, user-centric industrial designs, coupled
with innovative technologies that deliver true benefit to the consumer, sets it apart from competitors. Logitech
has repeatedly received awards for design and innovation. During calendar year 2005, the Company’s product
designs received the following honors: “red dot” awards, iF Industrie Forum Design awards, Good Design
awards, CES Innovations Design and Engineering awards, and an ID Magazine’s Design Distinction award.
Logitech’s advanced technology, evidenced by products such as the G7 Laser Cordless Mouse, the G5 Laser
Mouse, the QuickCam®Fusion™ Webcam, the Cordless Desktop®MX™ 3100, the V500 Cordless Notebook
Mouse, the Harmony®880 Advanced Universal Remote, the mm50 Portable Speakers for iPod®, the Z-5500
Digital Speakers, the V20 Notebook Speakers, and others, garnered numerous top billings, including Editors’
Choice, Product of the Year, World Class Award, Top 100 Gadgets of the Year, and more, in a variety of
publications such as Popular Mechanics, PC World, PC Magazine, CNET, Computer Shopper, Macworld,
Maximum PC, and in many other media outlets worldwide.
Substantial Technical Expertise
Logitech has accumulated significant expertise in the key engineering disciplines that underlie its products.
For example, Logitech engineers have continually enhanced motion-encoding technology for control devices
over several distinct generations. They have developed several radio transmission technologies for cordless
operations, developed new applications for webcams, enabled the integration of new controllers in console
gaming, and developed innovative database and web-based systems to configure the Company’s advanced
remote controls. Many of the technologies involved in these developments have applications across multiple
product offerings, allowing the Company to leverage its accumulated investment.
Logitech believes its future lies not only in its strong internal technical resources, but also in partnering with
other industry leaders with complementary technologies that promise to make the interface more productive,
natural and enjoyable.
Technological Innovation
Logitech has long been at the forefront of technological innovation, with a list of more than 75 industry
“firsts” to its name and a patent portfolio of more than 100 patents.
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