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WLAN hardware revenue to grow by 2 percent

Posted: 26 May 2004 ?? ?Print Version ?Bookmark and Share

Keywords:wlan hardware? infonetic research?

Worldwide WLAN hardware revenue hit $696.4 million during the first quarter of this year, up by 2 percent from the previous quarter, and is expected to grow by 2 percent to $713.6 million in the first quarter of 2005, according to Infonetics Research.

The market research firm predicts revenue growth over the next year will be slow due to eroded ASPs resulting from increased vendor competition. Overall unit growth will also be slow and steady in the single-digit percents over the next four quarters. Meanwhile, revenue is projected to top $3 billion in 2007.

While the overall WLAN hardware market held relatively steady from the previous quarter, wireless LAN switch ports had a stellar first quarter of the year: Ports grew 158 percent and revenue grew 121n percent. Healthy quarterly growth in the double-digit percents will continue through 2004, and double-digit annual growth is expected through 2007, says Infonetics Research.

"This was a strong quarter for WLAN switch vendors, with the segment showing healthy port and revenue growth; startups in particular are gaining traction and have been pulling in some notable customer wins, not just in the U.S., but in Europe and Asia too," said Richard Webb, directing analyst at Infonetics.

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