Wi-Fi Chip Costs to Plummet

Glenn Fleishman: “From $16 now to $6.50 by end of year: That’s for 802.11b; g chips should drop from $18 down to $10; b should wind up around $4 next year.
Since the cost of chips is one of the fundamental multipliers for any Wi-Fi equipment, a drop in price by nearly half to two-thirds could shave 10 to 30 percent off the cost at street. A $100 access point could drop to $70, for instance. PC Cards are already as low as $50 and there are some basic costs. I would expect the bottom of the market is $35 for PC Cards, $30 to $35 for USB, and $50 for PCI. Access points could wind up as cheap as $50.”
That’s terribly good news for everybody concentrating on wireless solutions, and bad news for all the cable guys – reminds me when german Telekom went fiber, the copper cable companies (one of which was related to the minister responsible for telecoms…) got into serious trouble.


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