German computer component and peripheral maker Cherry is exploring the sale of its well-known peripherals division after recording a net loss of over 20 million euros in the first nine months of 2025, according to a recent report.
The company, a long-standing fixture in the gaming and hardware enthusiast community, formally initiated a merger and acquisition (M&A) process. This aims to divest either its peripherals or its “Digital Health & Solutions” unit.
This strategic move comes as Cherry grapples with a steep financial decline, which saw it lose €20.4 million (approximately $22.2 million) through September 2025. The company has also revised down its fiscal revenue projections for the year.
Intensified competition from Asian manufacturers, coupled with a general decrease in demand for both office and gaming peripherals, has eroded Cherry’s market margins and overall revenue. The German firm also cited a shrinking market for its proprietary components as a contributing factor to its financial struggles.
Earlier this year, in response to these pressures, Cherry ceased mechanical switch production at its German headquarters. Manufacturing has since been relocated to facilities in China and Slovakia.
Should the peripherals division be sold, it could lead to the discontinuation of iconic products such as keyboards featuring Cherry MX switches. Industry observers suggest that new ownership might prioritize cost-efficiency over the brand’s established quality and reliability. This potential shift could result in scarcity, increased prices, and a diminished selection of Cherry-branded peripherals for consumers globally.