News & Analysis
Wireless LAN switches resist price erosion, says report
2/11/2005 3:12 PM EST
MANHASSET, N.Y. — Makers of wireless LAN switches are holding the line on product prices and avoiding the intense price competition that is wreaking havoc on profits for makers of standalone enterprise-grade access points, according to a report from Unstrung Insider.
The Enterprise Wireless LAN Price Report provides and analyzes detailed pricing data on 37 wireless LAN switch products, 19 enterprise-grade, standalone access points, 13 appliance/gateway products, and 18 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," said Unstrung Insider chief analyst Gabriel Brown. "We don't expect street prices for wireless switches to decline dramatically this year."
Brown added, "Orders of around $30,000 are seeing discounts of between 10 percent and 15 percent to list price, while orders worth several hundreds of thousands of dollars are seeing discounts of 30 percent to 35 percent. It's not a fire-sale situation."
According to the report, street prices for wireless LAN switch systems range between $600 and $800 per access point deployed, representing a substantial premium over standalone access point networks, which have dropped to $400 from $840 six months ago.
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