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Summary:

Logitech’s Google TV sales tanked in the first three months of this year: The company missed its previous forecast on Google TV sales by more than 70 percent. Logitech now hopes that the next generation of the Google TV platform will turn things around.

logitech revue

Logitech had a rough fourth fiscal quarter, with sales in Europe far below expectations, and the company’s Google TV business not exactly helping to turn things around. Logitech’s Revue Google TV set-top box and periphery devices, such as the a Revue-optimized webcam, only generated about $5 million in sales in the last quarter, according to Thursday’s earnings (PDF).

That’s far below expectations. Logitech had reported Google TV product sales of $22 million for the previous quarter, and estimated to sell another $18 million in the fiscal fourth quarter. The company missed these estimates by more than 70 percent. Tanking Google TV sales were also reflected by a 28-percent rise in inventory.

CEO Gerald P. Quindlen told investors in prepared remarks Thursday (PDF) that he’s still “enthusiastic about Google TV.” He also said that Logitech has scaled back marketing for its Google TV product, but added the company was “fully prepared to re-accelerate those activities at the appropriate time.” A look at the quarterly results reveals Logitech spent 19 percent more on marketing last quarter, with most of that money going towards pushing Google TV products and Harmony remote controls.

Logitech has been a Google TV launch partner since the search giant unveiled its TV play at its Google I/O conference last May. Its Revue set-top box went on sale last October. However, Google faced a huge backlash from consumers and reviewers who deemed the platform too complicated. That many TV networks have been blocking access to full episodes of their shows didn’t exactly help either.

Quindlen said Thursday that he sees “the next generation of Google TV” as one of the big growth opportunities for his company. Part of this next generation will be apps and access to the Android Market, which is expected to be launched at this year’s Google I/O conference, taking place next month.

  1. $27 Million means Logitech may have sold 180’000 thousand Google TV boxes thus far, at least a bunch more than 100’000 units. You have to consider Google TV has been out only in the USA, Sony also takes another half or more of the Google TV sales thus far, and Google has been asking to delay mass marketing of it until second generation Google TV software is ready, which is next week at Google I/O.

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  2. Don’t forget – $5M in sales for a CE company is on the order of ~$1.2M in net revenue. Not including any costs of development, salaries, operational expenses, forward-booked inventory, etc…

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  3. That’s what you get when you make a product for hardcore geeks without considering how average people (those who aren’t overclocking their PCs and jailbreaking their phones) are going to react to it.

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  4. This is one of the biggest mystery to me.
    Did anyone try to install this product? I still cannot believe that any fortune 500 or 1000 company would release such a bad product.
    It was the most painful product to
    Install, by the time you are done installing you either want to trash it or return it to the the store. You have to try to believe it!

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    1. I’m not sure what product you’re describing.

      Plugged it in-line between my DirecTV receiver and my AV Receiver, logged in to my google account, plugged in the model number of my TV, STB, and AVR, and I was in good shape… it’s been a while since I set it up, but it was not a complicated process.

      Disclaimer: I received a free unit from http://googletv.blogspot.com/2010/10/google-tv-is-coming-to-10000-lucky.html but I would and have recommended it for all of my friends.

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  5. That’s the deal. Google: good at engineering. Not so much in interface. Who thought this would take off? Does he know he made a mistake?

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    1. LOL. That’s easy. All the Google fantards, that’s who. Louis Gray’s post “While Apple Slept On Their Hobby, Google Executed” from last year is a prime example.

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    2. Couldn’t disagree more. The problem with GTV isn’t the interface or concept. I’ve owned 2 first-gen Apple TVs (both hacked to run XBMC and Boxee), 1 second-gen Apple TV, a Boxee Box, Roku, plus XMBC on a first-gen XBox and I can say categorically and without any hesitation whatsoever that the GTV interface is a good and usable as any of the other HT boxes. The concept is great . . . in fact, I’d say the pass-through idea is brilliant (never having to switch inputs on my TV is a godsend). Chrome on GTV is also the best TV web browsing experience I’ve ever had.

      The problem with GTV is pure and simple: limited functionality out of the box. Once content providers began blocking GTV, it lost 75% of its value to the user. In fact, all I use mine for these days is as a media streamer (works great for .avi and .mov files) and to watch podcasts.

      Although Google may never be able to negotiate deals with the networks, GTV still has a decent chance of becoming a success if Google would just get off their asses and implement the Android Market. Then the possibilities are virtually limitless.

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      1. I think you just illustrated Jim’s point.

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      2. I think you personify the definition of “geek.”

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  6. well at least they got rid of the inept person that led this disaster already.

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  7. Regardless of what the sales are.. I bought a Logitech Revue and use it daily constantly.. All the time.. I am using it now. It has changed the way I watch television. I tweet and watch shows at the same time. I run Pandora music off it. I watch hi-res video off youtube with it.

    Another part of this equation that people can’t seem to grasp is the ability for a website to deliver HTML5/CSS3 optimized for Google TV templates.. Giving a completely new web experience that is pretty much the same ui experience we use to get from old CD-roms and Director movies, but its dynamic.. and not using redundant resources.

    In addition with all that.. once Google drops the OTA update (I guess called Fishtank) you are basically going to have the functionality of a tablet since Android 3.1 is the intended update. Google Marketplace will be enabled with apps, books, movies, and eventually music.. Music Beta will be available as well allowing for streaming of your entire music library from the Google Cloud.

    Android is just getting started.. we are just now starting to see what true “Connectivity” really is.. with the 4g and LTE networks, Dual core/GPU devices.

    Listen, A store is to a site, as an app is to a site, as a channel is to an app.. Its all the same people.. they are all points of distribution to be monetized at all costs!

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