Strong Branding Critical To Future Success of Wi -Fi Chipset Companies

ABI Research expects Intel`s market share to grow to over 30% by 2005.

While Wi -Fi hotspots have moved from the status of "hype" to the first stages of established deployment in recent months, Wi -Fi as an access technology has never been hotter. And the firms making the chipsets are engaged in a battle for market share.


Intel, which almost single -handedly boosted awareness of Wi -Fi with its $300 million Centrino campaign last year, represented less than 5% of the market for Wi -Fi chipset shipments in 2003. This is set to change, and ABI Research expects Intel's market share to grow to over 30% by 2005.

But Intel's market share growth will be driven almost entirely by mini -PCI cards, the embedded adapters that make laptops Wi -Fi -enabled. Another key segment to the market - - SOHO and enterprise routers and adapters - - remains open territory. ABI Research believes that this segment will remain highly competitive, though Broadcom and Conexant are among the best positioned to emerge as market leader.

Both Broadcom and Conexant have moved into the Wi -Fi chipset space from a proven track record in communications ICs such as those for DSL and cable modems. Wi -Fi ICs are a natural progression of their technology and proven capabilities as these companies look to reduce costs by integrating IC components. Both companies also have a strong offering in 802.11g and a/g solutions which makes them a contender for the mini -PCI business. However, Intel's strength of brand in this area will make it much more difficult for the competition to be as successful here as they are in the adapter / router segment. Later this year when Intel launches its own 802.11a/g chipset, this will likely consolidate Intel's monopoly on the mini -PCI segment.

Broadcom, who enjoys strong branding for its chipsets and was the first to market with a single -chip Wi -Fi solution, maintains a lot of upside potential. The game for the remaining players in the Wi -Fi IC business is going to be one of branding. Intel has proven its abilities to win consumer mindshare. As future Wi -Fi opportunities continue to be driven by consumer -based volume markets, Intel's competitors must launch strong brand campaigns of their own or make sure they strategically position themselves as the key supplier to an OEM who can.

ABI Research's Wi -Fi Quarterly Service provides data on hotspot deployments, integrated circuits, network equipment, and other key market drivers. Emerging Wi -Fi opportunities and the technology's future co -existence with cellular technologies are also provided.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the web at abiresearch.com, or by calling 516.624.3113.

Featured Product

Aperion Audio - Award Winning Home Audio for less

Aperion Audio - Award Winning Home Audio for less

Aperion is a group of dedicated audio enthusiasts committed to helping you create the sound experience of your life, at a price that won't break the bank. We make award-winning speakers that look as good as they sound and sell them online so you get unbeatable quality for the price. You always get a 60-day in-home audition with FREE SHIPPING. If you don't like your speakers for any reason, send them back and we'll pay the shipping. Really. You get unlimited free support for your entire system and we back up our products with generous 5-and-10-year warranties. Since we've been around for over fifteen years, you're covered.