August 14, 2003

Researcher Dell'Oro Group on Wi-Fi: "revenue and sales growth apart"

"During Q2, worldwide shipments of 802.11-based kit were up six per cent on the first quarter's figure and a massive 69 per cent up on the same period last year.

However, Wi-Fi revenues totalled $149 million during the quarter up just two per cent from Q1's total of $146 million, and ten per cent above Q2 2002's $134.1 million."

In other words, more units are shipping, but the competitive price pressures are shrinking the profit margin. Good news for buyers. And an indicator that the major manufacturers of wi-fi products, such as Cisco and Netgear, will probably continue to have an edge over niche competitors. When profit margins go down, the ability to ship more units becomes critical.

Posted by Diana at August 14, 2003 08:57 AM