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February 18, 2004

Apple Sells 20% of 802.11g Products

By Glenn Fleishman

BusinessWeek columnist notes that Apple’s aggressive Wi-Fi promotion has brought them 20 percent global 802.11g marketshare and huge margins: Alex Salkever points out that Apple earned nearly $150 million from 802.11g in 2003 and talks about how Apple’s managed to keep its premium margins. With increasing ease and cheaper alternatives ($75 for an equivalent Linksys WRT54G versus $200 to $250 for the Apple unit), Salkever predicts eroding markets that will force Apple to offer more features for fewer dollars. (Apple’s 802.11b revenue was likely just a few million due to the sale of leftover original base station and the continuing sale of AirPort Cards.)

Salkever is using In-Stat/MDR numbers which shows Apple at 20 percent of worldwide unit volumes for 802.11g, which is $150 million in sales, above Linksys. Numbers reported by News.com from Synergy Research don’t show Apple in the top five for the overall 802.11 sales (which includes 802.11a, b, and g), and show Linksys revenue at $450 million. Given the growth rate of 802.11g, I’m sure Apple will still stay up in the pack as the market shifts.

Posted by Glennf at February 18, 2004 8:34 PM

Categories: 802.11g

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