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Wi-Fi Wireless LANs Double-Digit Growth

Worldwide revenue for wireless LAN equipment dipped 5 percent in 4Q06 to $740.6 million, but topped $2.8 billion in 2006, an 18 percent increase over 2005, according to Infonetics Research.

The wireless LAN switch segment is especially strong, posting 27 percent revenue growth in 2006, despite a down fourth quarter.

"2006 was another strong year for wireless LAN equipment, posting double-digit annual growth for the third consecutive year," said Richard Webb, analyst at Infonetics Research. "Organizations are learning to leverage high speed connectivity with mobility in the workplace, meaning wireless LANs continue to penetrate all sectors. Additionally, 802.11 solidified its position as the leading home networking technology with sales of consumer products boosted by the launch of pre-802.11n draft products in 2006."

Market Highlights:

- Worldwide WLAN equipment revenue is forecast to grow 51 percent to $4.3 billion between 2006 and 2010.

- Enterprise WLAN equipment revenue was up 24 percent in 2006, and is forecast to grow strongly through 2010, while residential revenue will decrease by 2010, despite volumes continuing to rise.

- Access points accounted for 78 percent of WLAN equipment revenue, WLAN switch products 22 percent in 4Q06.

- Linksys retains the #1 spot in residential WLAN equipment revenue market share in 4Q06, followed by NETGEAR and D-Link.

- Cisco holds the #1 spot in enterprise WLAN equipment revenue market share, followed by Aruba Networks, then Motorola, which recently acquired Symbol Technologies.

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