Worldwide shipments of WLAN equipment increased by 120 percent in 2002 from a year ago, but revenue was up just 29 percent because of falling prices, a market research firm said Monday.
Total shipments reached 19.5 million units last year, compared with 8.9 million units in 2001. Revenue, however, only increased to $2.2 billion from $1.7 billion, respectively.
Wireless LAN equipment is one of the few growth areas in the network equipment market, attracting a large number of vendors. This has led to heated competition that has forced prices down, Gartner analyst Andy Rolfe said.
In 2002, Linksys overtook Cisco Systems as the leading wireless equipment vendor, accounting for 14.1 percent of revenue. Cisco slipped to the No. 2 position with a 13.9 percent market share. Linksys' success was helped by its strength in the wireless LAN adapter and wireless LAN broadband gateway segments, Gartner said.
Buffalo Technology was the No. 3 vendor in market share, followed in order by D-Link and Proxim.
Linksys also led the wireless LAN market in unit shipments with 14.6 percent, or 2.9 million. D-Link was No. 2 with 9.6 percent, or 1.9 million units, followed in order by Buffalo Technology, 9.5 percent, or 1.86 million units; Symbol Technologies, 9 percent, or 1.8 million units; and Proxim 8.9 percent, or 1.7 million units.
In March, Cisco announced an agreement to buy Linksys, which will significantly boost Cisco's position in the market this year, both on a revenue and shipment basis, Gartner said.
This story is courtesy of TECHWEB.