SOHO/Consumer WLAN Vendors Struggle for Profits According to In-Stat.

SCOTTSDALE, Ariz. -- While SOHO/home WLAN equipment shipment volumes have increased strongly since Apple first launched its AirPort line of 802.11b-compliant consumer WLAN gear in 2000, prices have eroded sharply over the past several years, and few vendors are making much money in this market segment at present, reports In-Stat (http://www.in-stat.com). The SOHO/consumer AP market will rise from approximately 17.6 million units in 2004 to roughly 32.6 million units in 2009, the high-tech market research firm forecasts. A major story in this market is a key transition from the 802.11g air standard to MIMO-based products.

"In-Stat believes that there will be a gradually shrinking price premium for MIMO/802.11n throughout the forecast period," said Sam Lucero, In-Stat analyst. "The benefits of dramatically increased range appear to be resonating with consumers, actually more so than the increased throughput offered, and we believe customers are willing to pay the extra amount for whole-home coverage."

A recent report by In-Stat found the following:

--Eventually, while 802.11g will remain throughout the forecast period in very cost-optimized equipment, MIMO/802.11n will become the primary air standard; having a "universal" air standard is less confusing for consumers and easier to manage for vendors.

--Shipment volumes for MIMO-based equipment were small in 2004, but at least five vendors have now introduced products, with more expected in 2005.

--In contrast to the enterprise WLAN market, 802.11a/g equipment is not expected to gain traction in the SOHO/consumer WLAN market.

The report, "Here Comes MIMO: SOHO/consumer WLAN Market Analysis" (#IN0502025WS), covers the SOHO/consumer WLAN equipment market. Unit shipment and revenue market shares for 2004 are provided for SOHO/consumer APs, wireless routers, wireless Residential Gateways (RGs), and external SOHO/consumer WLAN NICs. Five-year forecasts, from 2005-2009, are provided for SOHO/consumer APs, wireless routers, wireless RGs, and external/embedded SOHO/consumer WLAN NICs. Brief vendor profiles are included. This report is useful for product managers and marketing directors in SOHO/consumer WLAN equipment and semiconductor vendor companies, financial analysts covering these markets, and consultants advising clients in these markets.

For more information on this report, please visit: http://www.instat.com/catalog/Wcatalogue.asp?id=216 or contact Tina Sheltra at 480-609-4523 or [e-mail]. The report price is $2,995.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, assessments and market forecasts of semiconductors and advanced communications equipment and services. Our forecasts, analysis, and insights are derived from both a deep technology understanding and a unique research methodology, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical technology, product and success decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. In-Stat analysts gain exceptional insight into geographic marketplaces and specific technologies within markets such as electronics, cable and wireless. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.