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In the last two years, the PC market has changed dramatically and there continues to be significant weakness in the global market for new PCs. This weakness has had a negative impact on our net sales in all of our PC-related categories. The increasing popularity of smaller, mobile computing devices such as tablets and smartphones with touch interfaces and the declining popularity of desktop PCs have rapidly changed the market and usage models for PC peripherals. Although the installed base of PC users is large, in our traditional, mature markets, such as the United States, Canada, Western and Nordic Europe, Japan and Australia, consumer demand for PCs has declined in recent years and we believe it will continue to decline in future years.

While we continue to pursue growth opportunities in select PC peripheral product lines in mature markets, we believe there are growth opportunities for our PC peripherals outside the mature markets. In emerging markets, such as China, Eastern Europe and Latin America, the installed base of PC A4Tech IRSW-35 is continuing to grow, which we believe presents new opportunities for us to broaden our PC peripherals customer base. These large populations present a significantly different demographic and trend line compared with our mature markets. In both mature and emerging markets, a strong installed base of business and enterprise customers purchase peripherals for their PCs. There are growth opportunities for our PC peripherals in the enterprise market because the preferences of employees increasingly drive companies' choices in the information technologies they deploy to their employee base.

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Both mature and emerging markets are experiencing strong growth in the popularity of smaller, mobile computing devices, such as tablets and smartphones with touch interfaces, which have created new markets and usage models for mobile peripherals and A4Tech IRSW-35. Logitech has begun to offer peripherals and accessories to enhance the use of such digital platforms. For example, consumers are optimizing their audio experiences on their tablets and smartphones with premium earphones and speakers that pair easily with their mobile devices. Consumers are also enhancing their tablet experience with a range of accessories and peripherals such as the Logitech Ultrathin Keyboard Cover for iPad and the Ultrathin Keyboard Cover for iPad mini that enable A4Tech IRSW-35 to create, consume and share digital content more conveniently and comfortably.

The video communication industry continues to make progress toward a vision in which people can conduct a video call from any of these platforms to any other platform. LifeSize has showcased such video collaboration by enabling video calling A4Tech IRSW-35 PCs, Macs, tablets, smartphones and video conference equipment.


The trend A4Tech IRSW-35 businesses and institutions to use video conferencing is even more prevalent than consumer use of video calling, and offers a long-term growth opportunity for Logitech. For businesses and institutions, video conferencing is increasingly substituted for travel, because of high travel costs as well as the productivity gain that can be achieved by a high-quality face-to-face meeting that does not require travel away from the office. Further, with the increased availability of higher Internet bandwidth, video conferencing is becoming a key component of UC unified communicationswhich is the integration of 7 Table of Contents enterprise-class collaboration and communications solutions such A4Tech IRSW-35 voice mail, e-mail, chat, presentation sharing and live video meetings.

However, we believe that Logitech is well positioned to compete with differentiated video and audio solutions that support the emerging UC platforms. Finally, we believe that trends established in the consumer technology market, such as brand identity, affordability, ease of installation and use, customer support, and visual appeal, have become important aspects of the purchase decision when buying a consumer electronics product.

A4Tech IRSW-35 These are strengths that we believe Logitech offers in both consumer and enterprise markets. Consumer Behavior and Customer Experience Strategy Our strategy is to further our understanding of consumers in each market and integrate the voice of our consumers throughout our product development and marketing efforts. We A4Tech IRSW-35 also focused on understanding and improving the consumer's overall experience with Logitech products.

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The design and customer experience group's goal is to use research, insights, technology and innovation to deliver great experiences to our users at each consumer touch point and in all Logitech products. We define customer experience as the focal point of our research and development, and use a process of prototyping, learning and iteration A4Tech IRSW-35 maximize customer satisfaction. We use metrics and consumer feedback mechanisms to drive meaningful and measurable improvements in our products. We believe that by creating products that people desire and love, we maximize the number of consumers who actively recommend Logitech products, fueling brand preference within and across our many product categories.


A4Tech IRSW-35 is especially important because we believe today's consumer exhibits increasing skepticism toward manufacturers, yet is more trusting of personal recommendations. Business Strategy Logitech's current strategic objectives are to: Our core product categories focuses on the substantial worldwide installed base of PC and Mac computers by offering innovative peripherals to address needs for comfort, productivity and easy connectivity, as well as entertainment and communication. We believe that the market for PC peripherals will continue to present opportunities for profitability and growth. In developed markets, the installed base of users is large and the market dynamics provide A4Tech IRSW-35 opportunity to drive profitability.

In emerging markets, such as China, Eastern Europe and Latin America, the installed base of users is still growing, which we believe continues to present opportunities for us to broaden our PC peripherals customer base.

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In the enterprise market, we believe the preferences of employees increasingly drive companies' choices in the information technology they deploy to their employee base. The increasing popularity of smaller, mobile computing devices such as tablets and smartphones with touch A4Tech IRSW-35 is rapidly changing the peripherals market. We believe there are significant opportunities for Logitech peripherals and accessories to improve the productivity, navigation and control abilities of tablets, smartphones and other mobile devices, enabling consumers to create, consume and share digital content more conveniently and comfortably. To seize the growth opportunities in the peripherals market for mobile devices, we are focusing on innovating new features and products to provide excellent consumer experience, and on reducing production cycle time to meet the evolving market demand and frequent introductions of new devices.

Digital music, the A4Tech IRSW-35 consumption of audio content on home and 8 Table of Contents mobile devices, also presents a growth opportunity, because Logitech has a solid foundation of audio solutions to satisfy consumers' needs for music consumption.

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Our video conferencing segment focuses on high-definition universal A4Tech IRSW-35 collaboration for businesses and institutions. During the third quarter of fiscal yearwe identified a number of product categories that no longer fit with our current strategic direction. Hundreds of A4Tech device drivers available for free. 18/06/03, A4Tech IRSW Mouse Driver(3D), Win 98SE, WinWin NTWin XP, Win Me, Win. A4Tech WWW 35 - mouse overview and full product specs on g: IRSW.

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