Taiwanese router shipments totaled approximately US$4.9 million units in the fourth quarter of 2004, 37% year-on-year growth and a 14% sequential rise. Shipment value climbed 34% year-on-year and 8% from the third quarter to reach US$188.3 million.
Taiwanese SOHO router shipments climbed from the third quarter due to holiday season demand. D-Link and Netgear's performance in the North American market during the fourth quarter was particularly strong. Early restocking during September in preparation for the holiday season resulted in a shipment decline during October, yet shipment demonstrated an upward trend overall due to brisk sales in November and December. In the enterprise router segment, shipment share of VPN (Virtual Private Network) and dedicated line routers remained flat. Yet given the small share of enterprise routers in Taiwanese product mix, impact on shipment volume was limited.
Share of wireless routers grew slightly, from 74.3% in the third quarter to 75% in the fourth, while wired routers exhibited a slight decline in share, from 23.3% to 22.8%. Wireless router product mix continued to trend toward 802.11g, and shipments of 802.11a+g routers priced between US$60 to US80 saw a small increase in volume. However, due to declining prices on 802.11g routers, ASP (Average Selling Price) fell from US$40.4 in the third quarter to US$38.4 in the fourth.
In the first quarter of 2005, wireless ADSL router awards by Western European operators will boost ADSL router volume, indirectly presenting a negative impact on SOHO router shipments. Adding the effects of the slow retail season, Taiwanese router shipments are expected to decline 4.3% sequentially in the first quarter to reach approximately 4.7 million units.
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