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LOGI's New Tablet Accessories

Zacks Equity Research

Recently, Logitech International SA (LOGI) launched a bunch of new and advanced tablet accessories. The new lineup includes Logitech Keyboard Folio and Logitech Keyboard Folio mini. These products primarily aim at protecting the touch screen along with the tablet. Additionally, they give the tablet a stylish touch with multiple colors.

The Logitech Keyboard Folio solves the typing issues faced by iPad users with on-screen keyboard. The device with the traditional full size keys along with the function of shortcuts connects the iPad through Bluetooth.

The product also provides advanced protection for tablets with an ultra thin cover, featuring instant On/Off functionality that switches on the tablet when the cover is open and puts it in the standby mode when closed. This in turn improves the durability. It also includes magnetic closures to further reduce the risk of damage to the tablet while in transit.

In addition, hands-free flip stand offers two comfortable viewing angles. These products are the result of years of expertise and experience of Logitech in keyboard manufacturing.

Both products will be available in a variety of colors and will initially be available in the U.S. and European markets. Logitech Keyboard Folio priced at $99.99 will be available from Apr 2013 while Logitech Keyboard Folio mini priced at $89.99 will be available from May 2013 for $99.99.

Given the current trend towards smart phones and tablets, Logitech intends to tap this high potential market through its range of accessories. In the last reported quarter (Q32013) Tablet Accessories was the best-performing retail product category, with sales increasing a robust 119.2% year over year to $39.4 million.

Recently, in Feb 2013, Logitech launched a slim protective keyboard cover specially designed for the ipad called the Logitech Ultrathin Keyboard mini. This cover is designed in such a way that it fully enhances the iPad experience. This product is currently available in the U.S. and Europe for $79.99.

Following this announcement, the company adopted a number of cost control measures which generated incremental savings of approximately $16 million – $18 million. Darrell is hopeful that these initiatives would result in improved operational efficiency and higher profitability along with speedier performance. In response to the news of the launch, Logitech shares moved up to $6.90 on Mar 20, 2013, compared with its previous day’s closing at $6.78 on Mar 19, 2013.

Currently, Logitech holds a short-term Zacks Rank #5 (Strong Sell). However, some other industry participants are performing better. These include Synaptics Inc. (SYNA) with a Zacks Rank #1 (Strong Buy), and Analogic Corporation (ALOG) and Novatel Wireless Inc. (NVTL) with a Zacks Rank #2 (Buy).

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