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Home Networks Pace WLAN Growth

Decreasing prices led to explosive growth in sales of wireless local area networks (WLANs) in general and home networks in particular, according to a study released Wednesday by In-Stat/MDR.

Overall sales of 802.11b WLAN products increased 14 percent in the last quarter of 2001, the study found. Spurred on by rapidly decreasing prices, home WLAN sales led the overall growth, with unit sales increasing by 20 percent compared to the previous quarter.

However, revenues for home WLAN equipment did not keep pace due to decreasing prices, growing at only 11 percent for the quarter, according to the study. Overall, including both business and home sales, there was negative revenue growth for the quarter, according to In-Stat/MDR.

The study predicted that 802.11b will remain the dominant WLAN technology throughout 2002 and that unit sales will continue to grow briskly, although probably not at the same rate as 2001.

The findings are part of the report: "4Q 2001 WLAN Market Analysis."