Wireless LAN Equipment Sales Up 20% in 2007

(Business News & Technology News, 28 Mar 2008)

Worldwide sales of wireless LAN equipment, including independent and dependent access points and WLAN switches and controllers, hit $1.9 billion in 2007, up 20 percent from 2006, driven by the increased rollout of enterprise wireless LANs and accelerating upgrading to 802.11n, according to Infonetics Research's latest Wireless LAN Equipment and Phones quarterly report.

Sales of enterprise single mode WiFi phones also jumped, up 61 percent in 2007, as adoption of wireless VoIP continued to penetrate the enterprise market, the report shows.

"Wireless LAN is becoming an increasingly ubiquitous technology and is commonly embedded into laptops, PDAs, phones, game consoles, and media adapters. Its widespread availability, affordability, flexibility and usage will make it an important technology even as other high speed wireless technologies like 3.5G and mobile WiMAX come to the fore," says Richard Webb, directing analyst for wireless and mobile devices at Infonetics Research. "Additionally, Wi-Fi-enabled smartphones like the iPhone and RIM's Wi-Fi Blackberry will significantly increase Wi-Fi hotspot traffic. In January 2008, AT&T, which offers the iPhone in the US, took over Starbucks' hotspots from T-Mobile, giving this segment an injection of fresh stimulus."

Other highlights from the report include:
- For the quarter, worldwide wireless LAN equipment revenue is down 1 percent in the fourth quarter, following an all-time high in the third quarter

- Worldwide WLAN revenue is forecast to hit $3.4 billion in 2011

- WLAN switch and controller revenue is up 15 percent in the fourth quarter, driving dependent access point shipments

- The speed benefits of 802.11n products are undeniable, but adoption will be gradual, as enterprises want to see a return on their 802.11g investments before upgrading

- Cisco continues to dominate the worldwide WLAN equipment market, holding the number one position in enterprise and service provider segments, with WLAN revenue now topping $200 million each quarter

- The jostling between Aruba and Motorola for number two position in the still-growing enterprise segment continues, with Trapeze Networks leading the rest of the chasers