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Ethernet PHYs Getting GigE With It Reports In-Stat/MDR

Posted on: Wednesday, 25 June 2003, 06:00 CDT

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--June 25, 2003--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 (http://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 $499

million to $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, U.S. 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.

The report, "Ethernet PHYs: Getting GigE With It" (#IN030669NT), discusses recent technological and market trends, including 10 Gigabit Ethernet, Ethernet in the First Mile (EFM), the transition from FE to GE, the rise of Asian Original Design Manufacturers (ODMs) and Original Equipment Manufacturers (OEMs), and integration and port density trends for Ethernet PHYs. A detailed five year forecast, for the period from 2002-2007, is also given. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/cat-nt.htm or contact Erin McKeighan; emckeighan@reedbusiness.com or 480/609-4551. The report is priced at $2,995.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science and medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.

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