Fellow Fool Shubh Datta recently wrote about how well ZAGG
But, there is hope for the ZAGGmate.
ZAGG has entered into a deal with Logitech wherein Logitech
What the deal means?
Before the release of Apple's Smart Cover, the ZAGGmate had really started to penetrate a market that was growing explosively. But the availability of the Smart Cover along with the iPad meant that many potential consumers would no longer look to ZAGG to provide them a protective cover.
The deal with Logitech will give the ZAGGmate and its company some sense of relief from what must have been a most unwelcome development. The deal offers ZAGG access to a much larger market as Logitech operates in more than 100 countries the world over. The agreement also gives ZAGG the ability to increase its presence worldwide under the world-renowned banner of Logitech, which is a well-established brand.
What can ZAGG expect?
ZAGG recorded revenues of $76.1 million in 2010, which was a 98.5% increase over the previous year. This was primarily due to the success of its flagship product, the InvisibleSHIELD, which is a protective shield used with iPads, iPhones, and many other handheld tech gadgets. ZAGG looks to have strong opportunities for additional gains in the year ahead as the ZAGGmate gets a much wider market to operate in and as new tablets are launched by companies such as Research In Motion
The Foolish bottom line
Getting access to a much wider market will definitely help alleviate fears that Apple's aggressive push into the casing market will shut out third parties like ZAGG. Also, it might allow Logitech and ZAGG to work together and create more innovative products, hence diversifying its product portfolio. It'll be interesting to see how ZAGG will capitalize on the vast market presence of Logitech. All things considered, the signs look good in 2011 for ZAGG.
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Sarosh Nicholas doesn't own any shares of the companies listed above. Apple is a Motley Fool Stock Advisor recommendation. Logitech International SA is a Motley Fool Hidden Gems pick. The Fool has written puts on Apple. Motley Fool Options has recommended a bull call spread position on Apple. Motley Fool Options has recommended a write covered call position on Logitech International SA. The Fool owns shares of Apple and Logitech International SA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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