Datacomm

December 24, 2002
SOHO routers maintain growth in 2002 despite downturn

UNITED STATES -- Although the service provider markets have slowed down, the low-end router segment (including SOHO routers [cable/DSL/other and wireless] and branch office routers) continues to increase. According to In-Stat/MDR, the total router unit shipments increased 68 percent in H1 of 2002 from H1 of 2001, due to the growth in SOHO routers, which doubled in volume from H1 in 2001.

SOHO routers continue to comprise the largest percentage of total router unit shipments (roughly 96 percent) and new routers introduced by Vina, Adtran, Perle Systems, Hitachi, Quick Eagle, and Netopia are expected to compete with Cisco's routers in upcoming quarters. Increasing end-user acceptance of broadband and other highly intensive applications, and a resulting increase in worldwide DSL and cable subscriber numbers will be the driving force behind SOHO router shipments. By the end of 2002, In-Stat/MDR expects 10.2 million cable subscribers and 7.6 million DSL subscribers in North America. Consequently, cable/DSL/other SOHO router unit shipments are expected to reach 4.1 million units by the end of 2002, and the total low-end router unit shipments will be almost 6 million units.

In-Stat/MDR research further revealed that the average selling prices of low-end routers decreased around 42 percent between the period H1 of 2001 and H1 of 2002. A majority of SOHO routers (greater than 60 percent) are being shipped to North America. The research added that Linksys and Cisco continue to remain number one and two in the low-end router marketplace. However, in Q2, 2002, ZyXEL ousted NetGear from the third position as it doubled shipments of SOHO routers.