Cherry is in a delicate financial situation. In fact, since the beginning of the year, the brand has been losing money and is having to make choices if it is to continue to survive. We’re talking about selling the Xtrfy brand, for example, or relocating production!
Cherry relocates production and sells Xtrfy!
If you’ve ever laid your fingers on a mechanical keyboard, chances are it was equipped with Cherry switches… Well, that was especially true a few years ago, since the brand’s patent expired, and Cherry is now facing stiff competition from abroad, especially China. Indeed, production costs are lower there, and there’s a wide range of products on offer. As a result, it’s not difficult to find switches that are nicer than the good old MX, even though the German brand offers a lubricated MX2A range as standard, with a new spring, etc.
In any case, the company is losing money, with a €20.4 million deficit between January and September. As a result, the company has reacted by relocating production to China, where costs are more affordable. It has to be said that since the start of the war in Ukraine (and the (useless?) sanctions against Russia), energy costs have soared in Germany which, coupled with wages, makes production less competitive.
Next, we learn that the company is selling off several subsidiaries, including its peripherals division. As a reminder, in addition to switches, the brand also sold keyboards and mice, even before the takeover of Xtrfy in 2022. In any case, the company is now selling off its entire peripherals business to raise cash, leaving only the R&D, service and logistics departments in Germany.
This way, the brand is concentrating on its engineering activities, while at the same time seeking to cut costs by selling off certain parts of the business.
