- Taiwanese router shipments rose 44% year on year to just over 3.9 million units in the second quarter of 2004, 12% growth from the first quarter. SOHO (Small Office Home Office) routers were met with stronger demand in the retail market, bringing in more orders from retail channel vendors in March and April. Although orders subsided in the May, business from North American channel players picked up in June as they prepared for the third quarter back-to-school season. Taiwanese router shipments for the enterprise segment declined due to seasonal factors in Europe, yet considering the low share of Taiwanese shipments that enterprise routers comprise, the impact on volume was limited.
Taiwanese router shipment value climbed 47% year on year to total US$161.5 million, 4.6% sequential growth. Although share of wireless routers grew from 74.1% to 79.3% between the first and second quarters, the rise did not significantly counter the general fall in prices. Furthermore, share of 802.11b grew from 38.4% to 40.9%, while 802.11g router share slid from 61.1% to 58.2%. ASP (Average Selling Price) thus declined 7% sequentially to US$41.2 in the second quarter.
In the third quarter of 2004 the back-to-school effect will likely drive orders from retail channel vendors. Combined with the continual increase in broadband subscribers worldwide, Taiwanese router shipments are expected to enjoy growth. However, with 802.11g already standing firm in the mainstream, there will be no new technologies inspiring demand. Furthermore, the installation of ADSL (Asymmetric Digital Subscriber Line) routers by broadband service providers worldwide is anticipated to erode into the stand-alone router market. Taiwanese router shipment volume is expected to grow 9% sequentially to total approximately 4.3 million units.