Revenue from Wi-Fi chipsets have only increased by fivefold over the same five-year period, however, as the cost of mass-produced Wi-Fi chipsets declined around the globe.
The tenfold increase in Wi-Fi chipset shipments since 2003 paired with a fivefold increase in revenues in the same period clearly highlights the falling average selling prices (ASPs) that we have seen as this market further matures, said Philip Solis, a senior analyst with ABI Research. Although ASPs got a small boost last year due to the introduction of higher-priced 802.11n chips, in general prices have fallen by about half, even though we’re moving to more complex chipsets that increasingly use OFDM and MIMO technologies for 802.11n.
In 2007, Broadcom remained the leading vendor of Wi-Fi chipsets, widening its lead over competitors due to a strong market share in the laptop computer segment.
In the coming years, growth opportunities for Wi-Fi chipmakers will be based on the diversity of device types in which wireless chips are embedded. Consumer electronics such as home theater equipment, gaming devices, and portable media players, as well as mobile handsets and computer peripherals will all see increased rates of Wi-Fi penetration in the next few years.
While CE products will initially see more Wi-Fi inclusion, we expect that by 2011 they will be overtaken by mobile handsets, Solis explained. Mobile Internet devices (MIDs) will become increasingly significant as well.
