Wireless kit sales on the up-and-up

Competition should keep lid on prices

Wireless networking kit sales rose 2 per cent in the first quarter of 2004 compared to the last quarter of 2003, according to Infonetics Research. Worldwide wireless LAN hardware sales were worth $696.4m in Q1 2004 and will grow another 2 per cent to $713.6m by the first quarter of 2005.

Revenue growth in the coming year will slow because more competition will push average selling prices down. Overall unit growth over the next year will be "slow and steady in the single-digit percents."

Although the overall wireless LAN hardware market was steady, wireless LAN switch ports saw massive growth. Sales grew 158 per cent and revenue grew 121 per cent. Researchers predict double-digit quarterly growth throughout this year and double-digit annual growth until 2007.

Linksys claimed the top spot for wireless hardware revenue leaving DLink in second place. NETGEAR takes third place and Cisco is in fourth. Sales to consumers and small businesses make up 60 per cent of revenue while service providers and big businesses make up 40 per cent. Infonetics expect enterprise and large business to increase its share of the market as security and enterprise-class switching improves. ®

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