Logitech International SA (LOGI) declared the collaboration of its mobile speaker brand, Ultimate Ears (‘UE’) with CSR plc (CSRE) – a semiconductor company – for enhancing the user experience of its UE BOOM and UE MEGABOOM speakers. Following this news, shares of Logitech gained around 2%, during the regular trading session on Jan 8 on the NYSE.
For the first time in the world, UE is providing its existing and new users with a feature to connect over 10 of its UE BOOM and UE MEGABOOM speakers at the same time. This new feature is likely to be available as free software update in the summer this year, in both iOS or Android platforms.
The introduction of the new features for UE BOOM and UE MEGABOOM speakers is in line with Logitech’s strategic plan. The company has been intending to tap the high potential market for accessories by pursuing innovation and expanding its product lines, especially UE.
As a matter of fact, with the growing adoption of new mobile platforms, such as tablets and smartphones in both mature and emerging markets, the demand for Logitech’s peripherals and accessories is gaining traction. On a positive note, Logitech’s mobile speaker business is flourishing since the past one year, aided by strength in the UE BOOM speaker sales.
Prompted by the success of its UE BOOM speakers, earlier this week, Logitech launched UE MEGABOOM, the next-generation portable wireless speaker. Apart from the features of its predecessor, UE MEGABOOM boasts a 100-foot wireless Bluetooth range, 20-hour rechargeable battery life and waterproof and stain-resistant skin. The new product will be available in the U.S, and across selected European and Asian countries, this month.
Such initiatives promise strong growth prospects for this Zacks Rank #1 (Strong Buy) stock and will further pave the way for strengthening its foothold in core operating regions. Logitech is slated to release its third quarter fiscal 2015 results on Jan 21.
Other better-ranked stocks in the same sector include Alps Electric Co. Ltd. (APELY) and Planar Systems Inc. (PLNR). Both carry the same rank as Logitech.
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