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New report examines state of wireless LAN switch market

Makers of wireless LAN switches are holding the line on product prices and avoiding the intense price competition...


February 11, 2005  


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Makers of wireless LAN switches are holding the line on product prices and avoiding the intense price competition that is wreaking havoc on profit margins for makers of standalone enterprise-grade access points, a new report from Unstrung Insider concludes.

The report contains pricing data on wireless LAN switch products, enterprise-grade, standalone access points, appliance/gateway products and thin access points from 19 different vendors.

“The wireless switch systems market has held up reasonably well, with average order size expected to increase steadily through 2005,” says author Gabriel Brown. “We don’t expect street prices for wireless switches to decline dramatically this year.

“Orders of around US$30,000 are seeing discounts of between 10-15% to list price, while orders worth several hundreds of thousands of dollars are seeing discounts of 30-35%. It’s not a fire-sale situation.”

The report found that:

* Street prices for wireless LAN switch systems range between US$600 and US$800 per access point deployed, representing a substantial premium over standalone AP networks.

* Enterprise-grade access points now have an average list price of under US$700 versus US$840 six months ago.

* Standalone access points are already “commodities,” expect prices to plummet further, and

* Security appliance vendors have been driven out of town, squeezed by switch vendors and low-cost newcomers.

Vendors covered include 3Com, Aruba Wireless Networks, Cisco Systems, Enterasys Networks, Hewlett-Packard and Nortel Networks.

Further information is available at www.unstrung.com.