WIRELESS COMPONENT TECHNOLOGY

WLAN Chip Sales in 2000 Driven by 802.11 b Popularity

SCOTTSDALE, Ariz., June 4 2001 - The year 2000 was a great year for wireless LAN component manufacturers, with the number of chipsets produced having more than tripled from the previous year, according to Cahners In-Stat Group (http://www.instat.com). The high-tech market research firm reports that last year more than 7.8 million wireless LAN (WLAN) chipsets were produced, and, despite a worldwide economic slowdown, another 7.7 million will be produced in 2001.

In-Stat reports that most of these increases have been driven by the huge popularity of 802.11b (Wi-Fi), but this may be changing soon with the introduction of several new standards for both home and enterprise. Products based on 802.11a and HomeRF2 will soon be arriving, and it appears that the new 802.11g standard will be ratified this year as well. However, "changing standards is only one part of what component manufacturers must deal with, changing component technology, especially with the introduction of zero-IF, is another," says Allen Nogee, Senior Analyst with In-Stat's Wireless Component Technology Group. In addition, despite the fact that sales are predicted to be strong over the forecast period, there is concern that the variety of new wireless LAN standards, about to enter the market, may confuse the customer.

In-Stat has also found that:

• By 2005, the total WLAN chipset market is expected to exceed $1.2 billion when network interface cards (NICs), access points (APs), and building-to-building bridges are included. This is up from just under $400 million in 2000.
• Evolving technology is pushing down chip prices and making products available to many additional applications. In addition, function consolidation is occurring.
• The residential market is the fastest growing segment of the wireless LAN business, with residential WLAN chipsets accounting for 47% of all WLAN chipset sales by 2005, a total of over 21 million units.

The report, "The Wireless LAN Reality Show - Who Will Be the WLAN Survivor?" (#WT0104WL), covers wireless LAN technology from both a standards and component point-of-view, and explores the many changes occurring. The report contains chipset forecasts through 2005; including chipsets by standard, chipset ASPs by standard, and WLAN chipset revenue by standard. Breakouts are included for the residential, industrial embedded, educational, and enterprise markets. In addition, the report includes company profiles of 16 wireless LAN component manufacturers, and news on their latest products. For some, an analysis of their products is included as well. To purchase this report, or for more information please contact Matthew Woods at 617.630.2139; mwoods@instat.com. The report price is $3,695 USD.

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

For more information, contact:

Allen Nogee, Senior Analyst - Wireless Technology
Phone: 480.609.4538
Email: anogee@instat.com

Kirsten Skedd, Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com