What does ZAGG stand for? (Zealous About Great Gadgets)

Dec 4, 2010 -

Essentially, ZAGG's primary source of revenue is from selling protective covers for electronics devices.

ZAGG's strategy involves providing alternatives to bulky protective cases. Not only that but they allow you to customize the design of such protective "skins". To me, they look more like protective films, which leads me to believe there are few barriers to entry. More on this later. 

Sales are made through their website as well as indirect channels ("big box retailers, domestic and international distributors, independent Apple retailers, university bookstores and small independently owned consumer electronics stores") Indirect channels of distribution accounted for 58% of 2009 sales, while website sales accounted for 29%. About 4% of net sales was generated from shipping charges.

ZAGG has managed to increase sales from $19.8M in 2008 to $38.3M in 2009. It is anticipated that this year will be even better. This is based on the belief that in 2010 there is increased demand from products such as the iPad. Although their gross profit margin was approximately 57% of sales. Their net income as a percentage of sales was only 8.8% in 2009.

ZAGG will continue to experience increased competition as BestskineverProtechy, and BodyGuardz try to steal "market shares" from ZAGG. None of the aforementioned competitors are publicly traded, therefore it is difficult to find comparatives. For now, it seems that as long as ZAGG can maintain it's market share, it will continue to be a leader in these type of product sales.


As of March 2010, ZAGG has not packaged their product along side any manufacturer's electronic devices. There is potential to do so and in doing so, their product brand will be more well recognized and could lead to an increase in sales.


Disclosure: I do not own ZAGG for my accounts. 

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