Cherry gives up German production and wants to sell core division
14 days ago
- #Manufacturing Shift
- #Business Crisis
- #Cherry
- Cherry is discontinuing German production and outsourcing to China and Slovakia.
- The company reported a net loss of €20.4 million with €70.7 million turnover (Jan-Sep 2025).
- Cherry's patent for MX switches expired in 2014, leading to competition from Chinese manufacturers.
- The company plans to sell either its peripherals or Digital Health & Solutions division to stabilize finances.
- Cherry's peripherals division includes gaming and office keyboards/mice, while switches are part of the Components division.
- Sales in gaming products halved in 2022 but partially recovered in 2023.
- The Digital Health & Solutions division declined by 30% to €23 million in 2023.
- Cherry sold its hygiene peripheral division 'Active Key' for up to €21 million.
- The company faces challenges in healthcare due to delayed telematics infrastructure rollout for medical providers.