WLAN Sales Up in Second Quarter

By Wi-Fi Planet Staff

August 15, 2003

New research indicates that strong sales of 802.11g helped drive the worldwide WLAN market in the second quarter.

The wireless local area network (WLAN) market continued to grow in the second quarter, according to new reports from industry research firms this week.

Phoenix-based Synergy Research Group said that global WLAN revenue reached $564 million in the second quarter, an 18 percent increase over the previous quarter. Cisco and Linksys were the top WLAN companies, with 14.8 percent and 14.3 percent of the market, respectively. Buffalo Technology (11.4 percent), D-Link (9.1 percent) and Netgear (8.9 percent) rounded out the top five market share leaders.

Enterprise WLAN revenues accounted for around 37 percent of the total. Synergy said that while the enterprise market continues to be slowed by security issues and restricted IT budgets, there are positive signs. Among them: the rise of multi-mode (a/b, b/g and a/b/g) products; the ratification of 802.11g; the introduction of Intel's Centrino wireless chipset; a predicted recovery of IT spending in the second half of the year; and the continued adoption by vertical and international markets.

The Dell'Oro Group of Redwood City, Calif., attributed the second quarter growth to the substantial adoption of 802.11g. The company said that while 802.11b revenues declined for the second consecutive quarter, 802.11g revenues grew 48 percent to comprise 24 percent of the total market.

As official 11g products hit the market, vendors are becoming more aggressive in their pricing of 11b products. Prices in each 11b product category declined by an average of 10 percent, the firm said.

The company expects to see further growth in the remainder of 2003. "We anticipate that market growth will accelerate in [the second half of the year] as back-to-school purchases fuel growth in the third quarter and holiday sales boost the market in the fourth quarter," said Greg Collins, director of the DellOro Group.

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