The ever falling prices of PC-related WiFi chips has forced early pioneer Agere Systems to throw in the towel and the company had decided that it is going focus on more premium markets like wifi chips for “converged cellular/Wi-Fi and wireless voice-over-Internet Protocol,” EE Times reports.
According to a company spokeswoman, mobility offers three times the growth of the PC market in terms of unit volume shipments. The company will emphasize its GSM/GPRS/Edge/WCDMA platform and develop a converged solution on the platform, with a wireless VoIP capability wrapped around it. That translates to a complete cessation of standalone WLAN chip development, including 802.11n, the much-hyped next-generation standard.
Even though Atheros has weathered the storm well and has stayed flat for past three months around $10 a share, it is going to find going tough. The company recently decided to get more aggressive on pricing. Translated into english, that means, we will do whatever it takes to retain market share.The scorched earth policies of Intel, and a brutal price war coupled with slowing PC sales are sign of the times. It is only a matter of time before the WiFi chips business goes into a gut wrenching contraction.