Netgear strikes reseller deal for China with Legend

Netgear is linking up with Legend Group to sell its range of home and small business computer networking products in China.

The agreement covers Netgear's full line of products and will see them co-branded with Legend's Lenovo brand name.

Legend, which is China's largest PC maker, plans to sell the products through three channels: retail, bundled with its PCs and via Internet service providers, Netgear said.

While Netgear manufacturers almost all of its products in China the Asian region accounts for less than one tenth of its sales. Net revenues from its Asian operations were $US5.4 million for the three months ending September 28, against total revenues of $75.8 million.

The deal gives Netgear a stronger platform from which to battle both foreign and domestic network equipment vendors in the Chinese market.

Those competitors include TP-Link Technologies, a Shenzhen-based vendor that Netgear named in its most recent report to the US Securities and Exchange Commission (SEC) as one of its chief competitors in the China market. TP-Link had a 37.5 per cent share of the domestic hub market and a 39.2 per cent share of the domestic network interface adapter market in 2002, the company said.