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DAILY NEWS AND INFORMATION
FOR THE GLOBAL GRID COMMUNITY / JUNE 30, 2003: VOL. 2 NO. 26
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Systems/Enterprise:
ETHERNET PHYs GETTING GigE WITH
IT
Declines in the per port ASP for Gigabit Ethernet (GE) transceivers will
drive
the overall Ethernet PHY market's port shipment and revenue growth from 2002
to 2007, according to In-Stat/MDR (www.instat.com). The
high-tech
market research firm reports that as GE ASPs have declined, PC OEMs
including Dell, HP, and IBM have started to ship GE connectivity standard on
business PCs, despite the lack of a "killer app" driving demand from the
customer.
Overall, the market for FE and GE PHYs will grow from 245 million ports
shipped in 2002 to roughly 368 million ports shipped, in total, by 2007, for a
CAGR of 8%. The market for Ethernet PHYs is increasingly transitioning from
Fast Ethernet (FE) to Gigabit Ethernet (GE) and In-Stat/MDR expects GE PHY
shipments to overtake FE PHY shipments in 2005, with a transition in switch
PHY shipments occurring in 2006.
In-Stat/MDR has also found that:
- Overall Ethernet PHY revenue from 2002-2007 will grow at a faster rate of
nearly 21% than port shipments, from US$499 million to US$1.3 billion.
Although ASPs for both FE and GE transceivers will decline over the forecast
period, the increase in total revenue is a result in a shift from FE to GE
over the forecast period, with GE having a significantly higher ASP, resulting
in higher overall revenue.
- 95% of all LAN implementations use the Ethernet protocol, with well over
750 million Ethernet ports deployed worldwide at the present time.
- Over the course of the next 2 3 years, US vendors will be forced to
increasingly reckon with the market influence of their Asian competitors, both
from the standpoint of lost market share, as well as further pressure on price
points.
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