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Wi-Fi Hardware Market Up 9%, Wi-Fi Switch Revenue Up 80%
[November 22, 2004]

Wi-Fi Hardware Market Up 9%, Wi-Fi Switch Revenue Up 80%

LONDON, Nov. 22 /PRNewswire/ -- Worldwide Wi-Fi hardware revenue is up 9% to $784.5 million and units are up 31% between 2Q04 and 3Q04, as the key driver for Wi-Fi products, data mobility, remains strong across all segments, according to Infonetics Research's quarterly market share service, Wireless LAN APs, Switches, and NICs.

Infonetics projects over 84 million Wi-Fi hardware units to ship in 2007, a healthy five-year CAGR of 37%, and 252% higher than 2003. Wi-Fi hardware revenue is forecast to top $3.7 billion in 2007, 49% more than in 2003.
Although units will continue to grow over the next year, ASPs will be eroded by increased vendor competition, resulting in flat or marginally decreased revenue in all but a few market segments, most notably the Wi-Fi switch segment, which is growing strongly.
"Wi-Fi switch revenue and ports grew phenomenally in the third quarter (80% and 127% respectively)," said Richard Webb, directing analyst at Infonetics and author of the report. "While this is in large part due to low base figures from the previous quarter, this young market segment has great potential. We are seeing increasing market traction for several vendors such as Airespace, which is showing sequential quarterly revenue growth. We forecast strong quarterly port and revenue growth through 2007."
"The consumer, enterprise, and public Wi-Fi hotspot segments together will drive overall growth in wireless LAN hardware over the coming five-year period, especially the consumer segment, which is on fire," Webb continued. "Broadband users are upgrading from basic wired CPE to wireless gateways in huge volumes."
3Q04 Market Highlights

-- Cisco maintains the lead it gained in the previous quarter, with 16% of
the worldwide wireless LAN hardware revenue share, following its second
consecutive $100-million-plus quarter
-- Linksys maintains second place with 13%
-- Access points account for about two-thirds of WLAN hardware revenue,
NICs for under a quarter, and security gateways and WLAN switch and
aggregation products make up the balance
-- Worldwide standalone access point revenue is up 6% from 2Q04 and
service provider/enterprise AP revenue is up 9%, but SOHO/consumer
standalone AP revenue is down 6%; consumers are showing a clear
preference for the more flexible functionality of wireless routers and
gateways above basic consumer access points
-- SOHOs/consumers still make up majority of WLAN hardware revenue but
decreased a point in 3Q04 while revenue from service
providers/enterprises increased a point
-- North America accounts for just under half of WLAN hardware revenue;
EMEA accounts for about a quarter, followed closely by Asia Pacific
at 24%

Wireless LAN Hardware tracks access points (standalone, wireless broadband gateways, WLAN bridges), WLAN switches, non port-based WLAN aggregation devices, security gateways, NICs, and embedded NICs. Standalone access points, indoor bridges, and the wireless LAN hardware revenue total are broken out by SOHO/consumer vs. service provider/enterprise.
Forecasts and market share are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific, CALA). Companies tracked include 2Wire, 3Com, Airespace, Ambit, Aruba Networks, Avaya, Belkin, Bluesocket, Buffalo Technology, Cisco, Colubris, D-Link, Ericsson, Foundry, Gemtek Systems, HP, Intel, Linksys, Meru Networks, Motorola, NETGEAR, Nokia, Nortel Networks, Proxim, SMC, Symbol, Trapeze Networks, US Robotics, ZyXEL, and others.
For the table of contents, log on to Infonetics Research's Information Portal at For sales, contact Larry Howard, vice president, at, 916-933-3543.
Infonetics Research ( is an international market research and consulting firm covering the data networking and telecommunications industries in North America, Europe, and Asia. Infonetics helps companies develop, market, and sell products and services by providing objective analysis of end-users, service providers, and product manufacturers. Infonetics has offices in Silicon Valley, the Boston Metro Area, and London.
Infonetics Research

CONTACT: Richard Webb, Directing Analyst, Wireless LANs of InfoneticsResearch, Inc., +44 (0) 20 8290 1954, or

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