Supply Constraints Plague Wireless LAN Market in 1Q22, Likely Worsen in 2Q22 According to Dell'Oro Group
Backlogs Approach Ten-to-Fifteen Times Normal Levels
REDWOOD CITY, Calif., June 7, 2022 /PRNewswire/ -- According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, supply constraints plagued the Wireless LAN market in 1Q22, and would likely worsen in 2Q22 as a result of the China Covid lockdowns. Several US-based wireless LAN manufacturers announced that backlogs approached ten-to-fifteen times higher than normal.
"Many enterprises have planned network upgrades and the popular connection is Wi-Fi. The trouble is getting it. Several manufacturers announced that components from second and third-tier suppliers became the bottleneck in 1Q22," said Tam Dell'Oro, Founder, CEO and Wireless LAN Analyst. "Supply constraints have resulted in highly volatile quarterly performance vendor-to-vendor depending on whether or not they have all the components. For example, sales may be up 20 percent in one quarter and down 20 percent the next. Another item, which could potentially cause delays, that we are keeping our eye on are the contract negotiations between the west coast dockworkers union and the Maritime Association," added Dell'Oro.
Additional highlights from the Wireless LAN 1Q22 Quarterly Report:
The Dell'Oro Group Wireless LAN Quarterly Report offers complete, in-depth coverage of the Enterprise Outdoor and Indoor markets, Wireless LAN Controllers with tables containing manufacturers' revenue, average selling prices, and unit shipments by the following wireless standards: 802.11ax (Wi-Fi 6 and 6E [6 GHz]), 802.11ac (Wi-Fi 5) Wave 1 vs. Wave 2, 802.11n, and historic IEEE 802.11 standards. The Enterprise market is portrayed by Cloud vs. Premises Managed, as well as by ten Vertical markets. To purchase these reports, please contact us by email at [email protected].
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, data center infrastructure, and network security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.
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SOURCE Dell'Oro Group