- Taiwanese WLAN (Wireless Local Area Network) shipments reached 13.1 million units, growing 85% year on year and 14% sequentially in the second quarter of 2004. WLAN NIC (Network Interface Card) accounted for roughly 11.6 million units, while WLAN AP (Access Point) comprised about 1.5 million units, respectively growing 13% and 14% sequentially.
Notebook PC shipments shook off the first quarter slump in the second quarter to grow 11% to 10.9 million units. Share of Centrino-equipped models grew to 50%, encouraging more NIC module orders to Taiwanese makers. Furthermore, demand for WLAN was strong in the retail market, particularly in North America during June.
WLAN shipment value reached US$288.9 million, rising 74% year on year, yet registering a more modest 4% sequential increase. Although 802.11g NIC and AP are already occupying the mainstream, 802.11b shipments continue to hold a certain share of shipments as the Centrino platform has not yet made an en masse move to 802.11g. The second quarter also saw a sustained fall in 802.11g chip costs, and WLAN AP prices fell by 9% compared to fourth quarter 2003 levels.
The peak retail season will surface in the third quarter, and with Taiwanese chipmakers such as Realtek rolling out 802.11g chips at the end of the second quarter, the resultant lower prices will likely stimulate demand. The ratification of the 802.11i security standard at the end of the second quarter is also likely to prod the enterprise WLAN equipment market.
However, with the US Federal Reserve expected to increase interest rates and as oil prices are threatening to climb. As these factors impact the larger economy, consumer confidence and corporate profitability will be affected. Moving into this economic climate, Taiwanese WLAN shipments are forecast to reach just over 15.3 million units in the third quarter of 2004.