Logitech Sheds Unflattering Light On Google TV Effort
July 28 2011 - 6:18PM
Dow Jones News
SAN FRANCISCO (Dow Jones) -- Google Inc.'s (GOOG) efforts to
become a bigger player in traditional media were dealt a setback
when partner Logitech International SA (LOGI) said sales of a
television remote control device built on the search giant's
technology fell far short of expectations.
In its fiscal first-quarter earnings release, Logitech said
demand for the Revue, which works with special Google TV software
to allow viewers to navigate Internet content, had been
disappointing. The Swiss firm said customer returns of the Revue
have outpaced the device's "very modest sales."
Logitech said it would cut the price of the Revue to $99 from
$249. The company had earlier cut the price from $299 to spur
sales.
The lackluster performance of the Revue marks a setback for
Google's television ambitions. The Mountain View, Calif.-based
company unveiled Google TV, a software package that blends
traditional programming with Internet media, to much fanfare at its
developers conference last year. The product was part of the
company's broader push to become a force in the distribution of TV
shows, movies and other media content.
However, Google faced resistance from major networks, which
worried their businesses would be undermined if their programming
was made available via Google TV. The device was also dogged by
complaints that Google TV was complicated to use.
A Google spokeswoman said Logitech's move wouldn't deter the
Internet giant from pursuing its TV projects.
"It's still early days for smart TVs and we're investing to
continue to bring innovation and progress for our partners and
users," she said. The company will provide new and existing users
with an updated version of Google TV later this year, she said.
During a conference call with analysts, Logitech Chairman
Guerrino De Luca stood by his company's partnership with
Google.
"It allowed us to build a strong relationship with the
technology leader which promises to bear more fruit down the road,"
De Luca said, according to a transcript. Still, the poor results
for the Revue are "partly due to the fact that Google TV has not
yet fully delivered to its own promises," he said.
Separately, Logitech said Thursday that De Luca will assume the
CEO role after Gerald Quindlen steps aside.
Other Google TV partners include Intel Corp. (INTC) and Sony
Corp. (SONY), which builds compatible TV sets.
-By John Letzing, Dow Jones Newswires; 415-765-8230;
john.letzing@dowjones.com
(Amir Efrati contributed to this story.)
Logitech (NASDAQ:LOGI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Logitech (NASDAQ:LOGI)
Historical Stock Chart
From Apr 2023 to Apr 2024