Users Turn Off Google TV, as Returns Outpace Sales
Source: JOHN LETZING
A Google TV display inside a Best Buy store last October.
Consumers dislike Google TV so much that they are now giving the product back.
Gadgets that use the company's Google TV software to connect televisions to the Internet are selling so poorly that one of Google's key partners disclosed Thursday that customer returns are outpacing sales.
Logitech International SA, which makes the Revue set-top box and special keyboard built on the search giant's technology, said Revue revenue was "slightly negative" in the latest quarter as more units were returned than purchased.
"There was a significant gap between our price and the value perceived by the consumer," explained Logitech Chairman Guerrino De Luca, in a conference call Thursday.
In a bid to spur sales, Logitech said it would lower the Revue's price to $99 from $249. The Swiss company had earlier this year cut the price from $299.
While Mr. De Luca admitted his company misjudged the market, he said the Revue's poor sales are "partly due to the fact that Google TV has not yet fully delivered to its own promises."
"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," Mr. De Luca said. "In hindsight, there are number of things we should have done differently."
The lackluster performance of the Revue marks a setback for Google Inc.'s television ambitions. The company unveiled its Google TV software to much fanfare at its developers conference last year. The product was part of the company's broader push to become a force in the distribution of TV shows, movies and other media content.
However, Google faced resistance from major networks, which worried their businesses would be undermined if their programming was made available via Google TV. The device was also dogged by complaints that it was complicated to use.
A Google spokeswoman said Logitech's move wouldn't deter the Internet giant from pursuing its TV projects. Sony Corp. also makes Internet-connected TVs powered by Google's software.
"It's still early days for smart TVs and we're investing to continue to bring innovation and progress for our partners and users," she said. The company will provide users with an updated version of Google TV later this year, she said.
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