LAN: market shrinks, demand rises
The LAN switch market is shrinking, but demand for products is higher than ever. Falling prices are the cause for this paradox, according to a recent report from In-Stat/MDR that showed Ethernet switch sales dipping from $US14.9 billion in 2001 to $US12.4 billion in 2002. However, port shipments jumped 12 per cent over the same time, going from 137 million in 2001 to 155 million in 2002. The report says that Layer 3 was the fastest-growing segment, jumping 13.8 per cent in port shipments. Overall prices for LAN ports fell from $US109 per port in 2001 to $US86 in 2002.
SingTel strong outside its home market in Q1
Singapore Telecommunications (SingTel) has increased its revenue by 20.3 per cent and lifted profit substantially despite a marked weakness in its domestic operations. The group now earns almost 65 per cent of its revenue and much of its profit offshore. Group revenue for the first quarter ended June 30 reached $2.57 billion. Revenue generated in Singapore fell 5.8 per cent to $911 million while overseas revenue rose 42 per cent over the year-earlier quarter to $1.66 billion. Net profit, excluding a one-time sale of its postal arm, SingPost, rose 46 per cent to $570 million. The weak state of Singapore’s economy and competitive price pressure saw revenue fall in all major sectors including mobile communications, data and Internet, SingTel said. By contrast, the group’s Australian subsidiary SingTel Optus increased revenue 17 per cent to $1.5 billion and posted a profit of $100 million. SingTel’s aggregate mobile subscriber base is now 37 million, 15 per cent up on the 32.1 million recorded six months ago.