Logitech has claimed that Google TV returns are outpacing its sales, though the company later felt the need to clarify this statement.
The company is one of the early partners in Google’s ambitious Google TV connected TV service. It offers the Revue set-top box powered by Google TV software.
Logitech stated last week that "returns of the product were higher than the very modest sales." It later qualified this statement by clarifying that this was including sales to distributors and retailers, not merely the level of returned items by consumers.
The poor sales and high return figures not only forced Logitech to fire its CEO, but also slash the price for Google TV from $249 to $99. The company faced losses of $30 million after its Revue set top box and related product lines failed to make an impact on the market.
Google TV is based on Google’s Android operating system and allows users to access web based video services like Netflix from their televisions. Clearly, Google’s attempt to dominate the living room has backfired and it will have to make further improvements in order to make it look more inviting to consumers.
"We launched Revue with the expectation that it would generate significant sales growth in spite of a relatively high price point and the newness of both the smart TV category and the underlying platform. In hindsight, there are number of things we should have done differently," the new Logitech CEO Guerrino De Luca said.
"We expect the lower price, particularly when combined with the upcoming enhancements to the Google TV platform, including the availability of an apps marketplace, should provide the consumer with a compelling value proposition," the company added.