Despite declining quarterly results, Logitech is confident about the evolution of the shortage of semiconductors. According to his boss Bracken Darrell, it should end in the coming quarters.
Is the end of the tunnel near? This is what Bracken Darrell, the boss of Logitech, wants to believe. Indeed, the latter declared to Reuters that he expected issues affecting electronics supply chains to be resolved by the end of the year. “We will be released in the third quarter, or in the worst case, the last quarter”, he told the news agency. As the group presents its quarterly results on a lagged basis, the third quarter refers to the period ending on December 31, 2022.
These optimistic remarks contrast with the quarterly results revealed by the manufacturer of computer accessories. Between April and June, Logitech saw its turnover drop by 12% to $1.2 billion. As for its net profit, it collapsed by 46%, to 100.8 million dollars. By comparison, the US company’s profits soared 159% in its 2021-2022 financial year, while revenues took off 66% over the same period, thanks to very strong demand. in IT equipment during the Covid-19 pandemic.
Semiconductor sales will fall in 2023
If Logitech is optimistic about the evolution of the shortage of semiconductors in the short term, the boss of Intel, Pat Gelsinger, estimates, him, that it will not end before 2024. One thing is certain, the The exit from the crisis will certainly not occur for several months, but the positive signals are multiplying. For example, Gartner said it expects global electronics component sales growth to slow in 2022, before falling 2.5% in 2023.
According to the American firm, the global turnover of the semiconductor industry would stand at 639.2 billion dollars in 2022, up 7.4% (26.3% in 2021). Next year, a market contraction is expected, with $623.1 billion in revenue. A recovery is not envisaged before 2024, the year when sales would start to rise again with supply chains which should no longer suffer from a global shortage causing nuisance for two years.