Wi-Fi 6 Archives - Counterpoint

Netgear Q1 2023: Revenue Stutters as Inventory Correction Set to Spill Into Q2

Netgear’s Q1 2023 revenue declined 27.4% YoY to $180.9 million.
SMB segment revenue declined 2.6%, the first drop in eight quarters.
Connected home product (CHP) segment revenue declined by over 27% YoY.
Netgear expects the Q1 2023 revenues to be in the range of $150-$165 million.

Netgear’s revenue declined 27.4% YoY in Q1 2023 to $180.9 million, which was below the guided level mainly due to inventory corrections in the consumer and SMB segments. These corrections are expected to continue in Q2 2023, thus requiring lower production for Netgear. However, gross margins improved in Q1 on the good performance of premium products such as Orbi mesh gateways, 5G mobile hotspots, and Pro AV switches. Supply chain issues have improved for most of the product lines which helped reduce the use of air freight, thereby helping gross margins.

SMB declines for the first time in eight quarters

The SMB segment ended Q1 2022 at $78.2 million, a decline of 3% YoY from Q1 2022. The revenue drop was mainly caused by inventory corrections at Netgear’s largest e-commerce account.
Pro AV switches, a major revenue driver in the SMB business line, grew more than 50% YoY in Q1 2023.
The broadcasting and studio industry is transitioning from analog to high-resolution digital over IP solutions, which is fueling demand for IP switches and creating a market opportunity for Netgear.
Netgear has partnered with over 200 manufacturers to increase and stabilise its supply of Pro AV switches. It is focused on developing budget and high-speed ports such as 25 Gbps or above to cover future demand.
Netgear expects channel inventory to stabilise for SMB by the second half of the year. Revenue from SMB is expected to overtake the connected home product segment later this year, which will boost the company’s overall gross and operating margins.

Connected home segment transition to premium continues

The connected home segment contracted by 21% in Q1 2023, as channel inventories were reduced sharply for major products among key service provider accounts.
The macroeconomic headwinds and declining demand hit the retail consumer networking market, resulting in poor sales in the low- and mid-price segments.
Channel partners are expected to further reduce inventory levels, which is leading to production cuts at several of Netgear’s manufacturing partners.
However, the Orbi premium mesh Wi-Fi access points continue to beat expectations along with 5G mobile hotspots, resulting in higher shipments.
Netgear remains committed to delivering the latest technology for consumers. It has launched a Wi-Fi 7-based router with a maximum download speed of 19,000 Mbps across three bands.

Service provider revenue declines by a quarter

Service provider revenues declined to $14 million as customers focused on burning inventory rather than restocking.
To offset this decline, Netgear pushed the unlocked version of M6 5G mobile hotspots in various countries across Europe. Netgear plans to offer it in the US in Q2.
5G mobile hotspots have been performing well for Netgear in the past couple of quarters, showing a sharp YoY growth. The higher ASP of these products has helped Netgear improve its margin coupled with better performance and reliability.

Shipments decline by 25% YoY, COVID hits APAC revenues

Netgear shipped around 1.8 million units of wired and wireless networking devices, compared to 2.4 million in the same period last year.
It shipped around 485,000 units of all types of routers and gateways. Wired devices overtook wireless devices for the first time, driving the revenues with a 56% share.
Revenue from Europe grew 6% while that from the Americas declined 16%. The APAC region performed poorly, declining 32% mainly due to the COVID-19 surge in China in the early part of Q1 2023, resulting in a slowdown in China, Hong Kong, and South Korea.

Losses continue, but improvements visible

Even though the gross margin improved and exceeded 30%, the lower top line weighed on the overall financials, meaning the operating margins remained negative but were improving.
The supply chain improved a lot in Q1 2023 for most products, reducing the reliance on costly air freight.
Netgear is committed to improving margins by offering more premium products and aligning the marketing spends accordingly.

Strong growth in paid subscribers

Netgear concluded Q1 2023 with 775,000 paid subscribers, a 23% increase over Q1 2022. Software subscription services such as Pro Support, Armour, and smart parental controls have done well in terms of increasing service revenue.
Netgear’s services revenue increased by 7.9% YoY in Q1 to $9.6 million.

Inventory correction to continue in Q2 2023

Netgear expects strong demand for its SMB products, especially Pro AV switches, and premium consumer products such as Orbi 8 and 9 mesh gateways and 5G mobile routers in the coming quarters.
However, it is expected that its channel partners will continue to focus on inventory reduction in a similar manner as in the first quarter, which will result in an expected revenue of $150-$165 million.
In the third quarter, Netgear will debut a Wi-Fi 7 Orbi mesh device to benefit from the technological tipping point. It anticipates that consumers will begin upgrading to Wi-Fi 7 later this year.
Netgear has set a target of 875,000 paid subscribers by the end of this year and expects the revenue from services to grow strongly. It aims to onboard around 2 million subscribers in the next couple of years.
Cybersecurity across home networks has been a rising concern, but there is a lack of consumer awareness of the threat for regular internet users. Netgear is looking to launch awareness campaigns around home network security and push its Netgear Armor service.

Key takeaways

Netgear has been working on creating a premium brand experience through its direct channels such as Netgear.com. It has also introduced concierge services for its current and prospective customers.
Netgear has invested significantly in highly targeted performance marketing to communicate with premium customers through various channels. Such customers usually opt in more for subscription services compared to non-premium consumers, thereby creating additional recurring revenue for Netgear.
Cybersecurity is an opportunity that Netgear can address with its Armor service. It will also aim to raise awareness of both the problem and its solutions.
5G networks are being rolled out at a fast pace in the US and more developed European countries, which is likely to drive increased demand for 5G mobile hotspots as they compete with public Wi-Fi hotspots that are plagued with poor online security.
Fixed broadband services have slowed in the past couple of quarters in the US, but fixed wireless access (FWA) has been on the rise. It offers a good alternative to wired services in some situations. We have seen many traditional Wi-Fi networking companies offering 5G FWA devices. Netgear can also tap this market.
Due to the COVID-19 upgrade gap, enterprises are expected to upgrade to Wi-Fi 7, skipping Wi-Fi 6/6E. However, because of the macroeconomic difficulties, this upgrade cycle is not expected to become a significant driver until 2024.

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u-blox Marks 25 Years With Record-breaking Revenue, Strong Growth Across All Segments

u-blox’s total revenue grew 44% YoY in 2022 to reach $654 million.
The company shipped more than 100 million chipsets and modules in 2022.
u-blox’s revenue is expected to grow more than 15% YoY in 2023.

Last year saw u-blox’s 25th anniversary, and the company marked the occasion in style, registering a record-breaking revenue of $654 million in 2022, an increase of 44.3% from 2021. Despite supply chain challenges, u-blox managed to fulfill customer demands with a diversified supplier base. The company experienced strong growth across all segments and regions.

Highlights for 2022

u-blox’s operating profit increased 258% YoY in 2022 to reach $138 million, demonstrating improved operational efficiency.
The mass adoption of high precession technology in industrial automation, delivery robots, autonomous construction and agricultural equipment helped its industrial segment to grow 52% YoY and capture 63% of the company’s total revenue.
The automotive segment also grew 54% YoY due to the increased demand for navigation and infotainment applications, driven by the shift towards electric vehicles. The segment contributed 28% to the total revenue.
The consumer segment grew 34% YoY and captured 9% of the total revenue.
Among regions, the revenue from APAC increased 59% YoY propelled by high demand for various applications such as infotainment, navigation, telematics and healthcare, particularly in Japan, Australia and New Zealand. In EMEA, the revenue grew by 43% driven by the strong performance of infotainment, navigation, industrial automation and asset-tracking applications. Similarly, the revenue in the Americas grew 48% YoY fueled by the robust growth of infotainment, navigation, telematics and healthcare applications.
In 2022, modules and GNSS chips contributed 79% and 20% of the total revenue respectively. The company shipped more than 100 million modules and chips combined in 2022.

GNSS modules

u-blox is maintaining its leadership position in the GNSS module market due to its superior quality and high precision. In 2022, u-blox’s GNSS module shipments grew by 28% YoY, contributing more than half of the total module revenue. These modules are widely used in automotive and industrial applications. To further enhance its positioning solutions, it has formed partnerships with GMV to provide end-to-end safe positioning solutions for autonomous vehicles. Additionally, u-blox has secured multiple design wins, including with NXP semiconductor, NVIDIA and Li-Auto, for its ZED-F9K GNSS module for automotive applications.

Wi-Fi/BT modules

In 2022, u-blox’s Wi-Fi/BT module segment experienced a 17% YoY growth, generating a revenue of nearly $57 million. The widespread adoption of Wi-Fi 6 in healthcare and industrial applications has played a significant role in the segment’s growth. Besides, u-blox’s partnership with AWS has created two innovative modules that are pre-provisioned for secure communication with AWS via Wi-Fi and cellular IoT, simplifying access to cloud services for customers. This collaboration with AWS is expected to drive the adoption of u-blox’s high-quality modules targeted at the industrial segment, increasing the company’s market share and revenue growth potential.

Cellular IoT modules

According to Counterpoint Research’s Cellular IoT Module Tracker Service, u-blox’s cellular IoT module segment grew by 37% YoY in 2022, reaching $176 million. The launch of new products in the first half of the year played a crucial role in this growth, with its smallest 4G Cat 1 modules shipping one million units within two months of launching. Its UBX-R5 LPWA chipsets are also gaining traction among customers. In the cellular LPWA chipsets market, u-blox is competing with major players such as Qualcomm, Sony and Sequans. Sony’s latest 5G LPWA chipset may create further competition for u-blox.

GNSS chips

u-blox shipped nearly 54 million GNSS chips in 2022, which contributed $131 million in revenue. The u-blox 8 series chipsets continue to be the top-selling chipset, while the new M10 chipsets are ramping up production at a rate of one million per month. Nofence is leveraging u-blox GNSS chipsets to develop GNSS-enabled livestock collars for regenerative farming.

Outlook

The company’s future strategy is to continue to lead with innovative solutions that combine chipsets and modules with services while considering socio-economic and eco-friendly factors. The ongoing adoption of electric and autonomous vehicles will be a major growth opportunity for u-blox. With a strong order book in place, u-blox is forecasting a substantial YoY revenue increase of 6% to 16% for 2023. The average analyst estimate for the 2023 revenue is $724 million, representing an 11% increase. Considering the high demand and interest for its products in the automotive, industrial and asset-tracking segments, it is probable that u-blox’s revenue will be near the higher end of the projected range.

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Netgear in Q4 2022: Orbi, SMB Units Offset Consumer, Supply Chain Weakness

Netgear’s Q4 2022 revenue was almost flat at $249.1 million.
Netgear’s SMB segment ended Q4 2022 with record revenue of $100.1 million.
The Consumer and Home Products segment’s revenue declined 14% YoY.
Netgear expects the Q1 2023 revenues to be in the range of $185-$200 million.

Netgear’s Q4 2022 revenue was almost flat at $249.1 million, a marginal decline of 0.8% YoY. However, it was at the high end of its guidance range on the back of a strong performance from its SMB segment, which exceeded $100 million for the first time. On the other hand, demand for consumer networking products, especially in the low- and mid-range, declined sharply, leading to a 14% YoY decline for Netgear’s Consumer and Home Products segment revenue. Supply issues were largely resolved in Q4, slightly reducing the reliance on costly air freight. The company continues to experience strong demand for its Orbi premium mesh Wi-Fi, 5G mobile hotspot and Pro AV switches.

SMB delivers record revenue

The SMB segment ended Q4 2022 with record revenue of $100.1 million, a 30% YoY growth from Q4 2021. Pro AV switches have grown by more than 60% in 2022 and have been a major contributor to the growth shown by the SMB business line.
There is a huge demand for AV over IP switches in the market as more enterprises look to upgrade to a digitally advanced AV network.
Netgear has focused on developing managed ethernet switches for the commercial AV industry and has looked to strengthen partnerships with AV OEMs and integrators.
A lot of enterprises are now returning to the office. Many offices still have Wi-Fi 5 or older technologies. Consequently, there’s a strong demand to upgrade to the latest Wi-Fi 6/6E technology.

Connected Home segment sees weak demand

The consumer home segment contracted by more than 20% in 2022 with especially weak demand in the low- and mid-range segments of consumer networking devices. Netgear is a leader in the US retail consumer networking market, so faced the brunt of demand contraction.
The segment revenue ended at $149 million, declining by 14% YoY. Netgear and its channel partners are working to reduce channel inventory to align with the lower market size.
A bright spot has been the Orbi line-up of premium mesh routers, which continues to perform well in contrast to the general trend of consumer networking. Orbi has become a strong sub-brand and Netgear can be confident about its premium market focus.

Service Provider revenue grew by 86% YoY

The demand for 5G mobile hotspots remained high and helped the service provider segment’s revenue recover to $57 million, near pre-pandemic levels.
Netgear’s M6 and M6 Pro 5G mobile hotspots are Sub-6 and mmWave enabled routers that have experienced interest and demand from telecom operators across the world.

Shipments decline by 19% YoY

Netgear shipped around 2.2 million units of wired and wireless networking devices. It shipped around 647,000 units of all types of routers and gateways. Wireless remains the dominant segment, driving the revenues with a 57% share.
Regionally, Americas’ performance remained similar to Q4 2021. EMEA grew by 5.4% and APAC declined by 10.8% mostly due to currency fluctuations across multiple markets on the dollar’s strength.

Operating margins remain under pressure

The supply chain improved in Q4, slightly helping reduce the reliance on air freight. However, as Netgear looked to fulfill orders on time, especially for SMB, it still relied on air transport, straining margins.
Netgear is focusing on higher-margin products such as Orbi premium mesh Wi-Fi, 5G mobile hotspots and Pro AV systems, which should help margins in the coming quarters.
However, it may need to rely on air transport until all backorders are cleared, so a recovery to profitability remains in doubt.

Strong growth recorded in paid subscribers

Netgear ended 2022 with 747,000 subscribers for its paid services, an increase of 28% from the same period in 2021. It is offering a one-year trial for Netgear Armor in select channels to increase the adoption of its paid services.
Services revenue was up by 23.9% annually in Q4 to reach $8.9 million, indicating that Netgear has been experiencing decent demand for its service subscriptions. Overall, it crossed 22.8 million users with 16.2 million app users.

Netgear to experience sluggish demand in H1 2023

Netgear expects the Q1 2023 revenues to be in the range of $185-$200 million as it looks to reduce orders for low- and mid-range against the backdrop of excess inventory. It also expects revenues from Service Provider customers to come down to around $25 million in Q1 2023.
Netgear is looking to strengthen its position in the premium consumer segment in 2023 with new technology launches, especially Wi-Fi 7.
It also expects to add more than a million paid subscribers to its subscription services which have been gaining traction. It has more than 10 million users worldwide who use Netgear’s app to control devices. This is a potential audience Netgear is looking to tap into in the future.
The margins are expected to improve slightly in H1 2023. However, the situation is expected to improve considerably in H2 2022 with the supply chain becoming smoother and the consumer segment seeing stronger demand, especially for new technologies.
Select channel marketing and consumer-oriented performance marketing campaigns will be pushed to drive the premium consumer segment.

Key Takeaways

Netgear has successfully demonstrated the need for premium networking products in the consumer segment. The number of connected devices in households has increased substantially and consumers are more aware about the networking backbone they are using. This should translate into a good demand for such products.
As 5G grows worldwide and in the US, the demand for portable mobile hotspots is expected to remain steady as they become more powerful and provide better battery backup.
The majority of consumer networking devices are now being supplied by service providers. Netgear can tap into partnerships with these service providers to scale its low- and mid-range consumer products.
With Wi-Fi 7 emerging and competitors launching Wi-Fi 7-enabled products earlier than expected, Netgear must expedite its product introductions in the critical premium segment.
Netgear will look to introduce more enterprise-specific products in the future as it sees success for its Pro AV and managed access points line-up. Netgear’s services revenue is expected to jump twofold this year as it taps more users.

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NXP Reports Record Revenue in 2022, Automotive Shines

2022 was a record-breaking year for NXP with solid profit growth and healthy free cash flow generation.
Accelerated growth drivers (except UWB) are on track within the expected revenue growth range (∼25%) to help take NXP’s total revenue to $15 billion by 2024.
For Q1 2023, the company expects revenue of about $3 billion. This would mean a deceleration of 4% YoY with a 9% downside sequentially.

NXP Semiconductors reported record revenues of $13.21 billion in 2022, a yearly growth of 19.4% on account of increased revenues in all end markets, unprecedented design wins across the entire portfolio and higher pricing (due to input cost inflation). Automotive and core IoT markets witnessed robust demand throughout 2022, outstripping the company’s supply capabilities. Consumer IoT and mobile markets experienced softening demand environment in the latter half of the year. In Q4 2022, NXP delivered revenues of $3.31 billion, up 9% YoY and down 4% QoQ. The Q4 revenues were $12 million better than the midpoint of the guidance with all markets performing in line or better than expected except the communication and infrastructure segment. The full-year non-GAAP gross profit was $7.64 billion with non-GAAP gross margin standing at 57.9%, an increase of 180 basis points YoY due to higher internal factory utilization and follow-through on higher revenues.

Automotive

NXP’s automotive business captured 52.1% of the total revenue in 2022, an increase of 2.4% from the previous year. Revenue for the full year stood at $6.88 billion, a yearly growth of 25.2%. This growth was driven by higher pricing, record customer design wins (for xEV solutions – battery management solutions, inverter controls, other xEV control processors, etc.), and strong traction of company-product drivers owing to accelerated content increases within xEVs and premium car models.
Q4 revenues were $1.81 billion, up 17% YoY and flat QoQ, in line with the company’s guidance. Due to supply constraints, NXP couldn’t ship more in Q4.
NXP emphasized on its auto-specific accelerated growth drivers, which will help it with increased yearly revenues in the future. They include 77-gigahertz radar solutions, electrification systems, and the S32 domain and zonal processors. Customer enthusiasm for S32 processors continues to grow, far exceeding expectations. A major automotive OEM has selected the S32 family of automotive processors and microcontrollers for use across its fleet of vehicles beginning next decade.
In Q4, NXP introduced the high-performance S32K39 series MCUs for electrification applications like traction inverter control, BMS and OBC, and announced its collaboration with Delta Electronics in which the latter will utilize NXP’s S32 automotive platform and S32K39 MCUs to develop next-generation EV platforms. At the CES this year, it unveiled the SAF85xx SoC, the industry’s first 28-nanometer RFCMOS radar one-chip IC family for ADAS applications.
For Q1 2023 revenues, the company is estimating this segment to be up in the mid-teens and flattish on a YoY and QoQ basis respectively. Increased global automotive production and growing penetration of xEVs would prove beneficial for future revenue growth.

Industrial & IoT

The industrial and IoT segment’s revenue for 2022 was $2.71 billion, up 13% YoY. The growth can be attributed to higher pricing and demand for its industrial processors, and analog, connectivity, and security solutions. Specifically, its secure connected edge solutions (accelerated growth driver), which include both crossover and i.MX application families of processors, grew nearly 50% YoY in 2022.
Q4 revenues were better than their earlier guidance at $605 million, down 8% YoY and 15% QoQ respectively. Due to lockdowns in China and uncertain macro conditions, consumer-exposed IoT businesses saw a deceleration in revenue.
In Q4, the company launched its new analog front-end (N-AFE) family of devices targeting industrial applications, specifically software-defined factories. It will help with high-precision data acquisition and condition monitoring systems for factory automation. Schneider Electric is incorporating the N-AFE family in its industrial solutions. NXP also launched MCX N series MCUs for secure intelligent edge industrial and IoT applications and expanded its portfolio of end-to-end Matter solutions by announcing the RW612 and K32W148 wireless MCUs. Both are targeted toward smart home applications such as garage doors, thermostats, smart plugs, and smart lighting.
For Q1 2023, the industrial and IoT segment is expected to be in the negative territory in both YoY (low 30% range) and QoQ (low 20% range) terms. The core industrial business remains supply constrained in some areas while consumer IoT is expected to experience cyclical weakness in demand and potential correction of customer inventory.

Mobile

For 2022, Mobile segment revenues stood at $1.61 billion, an increment of 14% YoY due to higher pricing and continued traction of the secure mobile wallet.
In Q4, it reported revenues of $408 million, up 9% YoY and down 0.5% QoQ, and faring better than the company’s guidance. As observed in the previous quarter, weakness in the Android mobile market continued to persist, affecting the largely channel-driven mobile business.
NXP’s mobile segment-specific accelerated growth driver Ultra-Wideband (UWB) was below the expected revenue growth range since NXP’s UWB solutions are aimed at the Android market, which is experiencing softening demand. However, the company is optimistic about this growth driver in the near future as it continues to build out its ecosystem and register more design wins both in the mobile and automotive sectors.
For Q1 2023, NXP is expecting this segment to be down in the mid-40% range both in YoY and QoQ terms. The mobile segment is dependent on a cyclical rebound and is expected to improve performance as and when the Android handset market fares better.

Communication infrastructure and other

The ‘communication infrastructure and other’ segment’s revenue in 2022 was $2 billion, up 15% YoY. This growth was driven by higher pricing and sales of in-demand solutions like network processors, secure transit and access products and RF-powered products for the cellular base station market.
Q4 revenues stood at $494 million, up 8% YoY but down 5% QoQ and below the company’s guidance. Weakness in this quarter had nothing to do with demand but was primarily due to operational issues and supply constraints.
NXP’s accelerated growth driver – RF power amplifiers – was on track as per its expected revenue growth range. The industry transition from LDMOS technology to gallium nitride happened faster than expected and the company’s revenue doubled YoY with respect to gallium nitride-based solutions. However, the demand continues to outstrip even its increasing supply capabilities.
In January 2023, NXP launched a new wideband GaN RF transistor – MMRF5018HS – primarily for aerospace and defense communications.
For Q1 2023, the guidance expects the revenues to be flat both in YoY and QoQ terms. NXP will try to improve its supply capabilities to cater to the pent-up demand in RFID packing solutions, e-government identification, 5G base station market build-out especially in India, and more.

Capex overview and inventory

Cash flow from operations stood at $3.9 billion in 2022. Net capex investments were $1.06 billion or 8% of overall revenue, a 1% jump from the previous year. Due to softening demand in consumer-oriented markets, internal front-end utilization rates have dropped for non-auto industrial products. From running in the high 90s in Q3 to touching 90% in Q4 2022 and in Q1 2023, it is expected to go down to 85%. Despite this, NXP is confident of keeping its gross margin within its long-term range of 55%-58% as it has a disciplined inventory management approach and a better grip on its cost structure, which is more variable in nature now than it was in past.
NXP continues to face shortages in certain nodes and other technologies like 180 nanometers, 9055 gallium nitride and the high-voltage analog mixed-signal (which are proprietary to NXP). This can lead to significant customer escalations which the company hopes will moderate by the end of this year. However, it remains optimistic about its supply capabilities in the future as its ability to cater to risk-adjusted backlog has gone up from 85% in 2022 to 90%-95% in 2023.
DOI has increased to 116 days, a 17-day sequential increment, and distribution channel inventory has been deliberately restricted to 1.6 months as opposed to its long-term target of 2.5 months. China’s market is experiencing weaker sell-through and NXP is being prudent about shipping more in the channel as it might not meet the true end demand and lead to an unnecessary inventory build-up. Since more than 50% of the company’s revenue goes through the channel, it is taking a very vigilant inventory management approach and keeping more than enough products in hand to fill the channel as and when required.

Conclusion

Input cost inflation due to supply chain constraints led to higher pricing for NXP solutions in 2022, a trend that will continue this year as well. Dynamic macro trends continue to pose an uncertain general demand environment and a potential rebound in the Chinese market could significantly improve end markets’ revenues, which is why managing internal and channel inventory is an important topic for the company. Overall, NXP is prepared for market uncertainties and will continue to execute diligently on its accelerated growth drivers and be disciplined with its operating expenses while protecting long-term R&D investments.

Top 10 IoT Announcements at CES 2023

At the first full-fledged CES event after the pandemic, the excitement was palpable. The event did not disappoint in terms of the variety of announcements across the internet of things (IoT) spectrum. Our teams, both on-ground and online, tracked over 260 announcements made by over 240 companies covering a range of segments across consumer, enterprise and industrial.

Devices formed the most popular category, with three out of every five announcements relating to this segment. As expected, the consumer and smart home sectors took center stage, but it was intriguing to see new launches in industry segments such as agriculture. Additionally, smart home, metaverse, augmented reality, healthcare and robotics were among the most talked about segments, attracting large crowds.

Here are the top 10 IoT announcements from this year’s CES, according to Counterpoint analysts:

1. Wi-Fi: MediaTek launches Genio 700, Wi-Fi 7 products

MediaTek introduced the Genio 700 IoT chipset targeting industrial, smart home and smart retail applications. This chipset will be available by Q2 2023. MediaTek also showcased Wi-Fi 7-supported products like gateways, mesh routers, televisions, streaming devices, smartphones, tablets and laptops partnering with TP-Link, Lenovo, Hisense, ASUS, BUFFALO INC, Skyworks, AMD, Qorvo, LitePoint and MAC MLO among others.

MediaTek is slowly diversifying its offerings beyond smartphones. The availability of products with superior capabilities and increased partnerships will help MediaTek increase its footprint in the IoT market.

2. Smart Home: TP-Link expands Tapo smart home products

TP-Link unveiled new products under its Tapo line of smart home devices. These new additions include cameras, a doorbell camera, a smart video door lock, robot vacuums and a smart hub home connection center. Besides, the company also launched its first Matter-certified smart plugs, smart switches, smart outlet extenders and smart bulbs. The launch of these products at CES 2023 highlights TP-Link’s focus on expanding and diversifying its offerings in the smart home market.

The company’s adoption of the Matter protocol for its Tapo and Kasa lines of smart home products shows its commitment to making smart home technology more accessible and user-friendly.

In addition to the smart home products, TP-Link also showcased Wi-Fi 7-supported router and gateway solutions for use in homes, enterprises and ISPs. The integration of Wi-Fi 7 will improve the gaming experience, as well as increase productivity in enterprise applications.

3. Asset Tracking: Pod introduces paper-thin tracker with SODAQ, Lufthansa

Pod Group, in partnership with SODAQ and Lufthansa Industry, has developed a paper-thin smart label tracking device that utilizes low-power cellular connectivity (LTE-M) for a battery life of up to six months. This sustainable, eco-friendly device uses alkaline batteries instead of lithium and has the potential to revolutionize the tracking and logistics industry by improving supply chain efficiency and reducing operational costs.

Similar efforts by SODAQ with Vodafone and Bayer utilizing NB-IoT technology have been observed, but the use of Low Power Wide Area Network (LPWAN) may be more beneficial as it targets a wider range of telecommunications operators.

4. Sensor: Bosch showcases sensor technology

Bosch Group subsidiary Bosch Sensortec presented a variety of new sensors at CES 2023. These offerings include an AI-enabled smart sensor system, magnetometer, barometric pressure sensor, and an air quality sensor. These sensors demonstrate advancements in power efficiency, accuracy and compact size, and aim to enhance the user experience by tracking personal health and fitness, providing accurate data and prolonging battery life.

Bosch has been a leading manufacturer of micro-electromechanical system (MEMS) sensors since 1995 and has produced over 18 billion units to date. It is also investing in quantum sensors, which can provide measurements that are significantly more precise than current MEMS sensors and enable more accurate diagnosis of neurological diseases. Additionally, the company is developing angular rate sensors that use the nuclear magnetic resonance of noble gas atoms and are optically pumped. These could prove to be highly precise and stable for navigation applications. Bosch believes that sensors will play a key role in IoT and continues to make investments in this area.

5. Modules: Quectel enables satellite connectivity, strengthens automotive module portfolio

Quectel is partnering with Skylo to integrate satellite connectivity into its 5G-ready BG95x/BG77x series of LPWA modules. This hybrid connectivity solution improves network coverage and makes it ideal for a variety of applications, such as trackers, wearables, smart cities and smart meters. Low-earth orbit (LEO) satellites are going to be a key for the non-terrestrial networks (NTN) coming up in 3GPP Rel17/18 in addition to the high-altitude platform system (HAPS).

Quectel also launched the AG59X series of automotive-grade 5G modules based on Qualcomm’s SA525M platform to support autonomous driving. The company has strong partnerships with Chinese automakers such as Li Auto, Nio and BYD, and this module will further strengthen its efforts to increase share in the automotive connectivity market.

6. AR/VR: Thundercomm unveils XR2 VR HMD, 5100 AR glasses and smart vending machine

Thundercomm, a joint venture between Thundersoft and Qualcomm, unveiled a VR HMD solution based on the Snapdragon XR2 platform and AR glasses based on the Snapdragon W5 platform. These products will not only provide flagship experience but also offer low power consumption, higher resolution and more wear comfort. The AR/VR space is heating up with the increased participation from leading technology and smartphone players such as Meta, Apple, HTC and Google. However, an early entry can be beneficial for Thundercomm.

The newly launched smart vending machine will help increase operational efficiencies for retailers. Moreover, this solution will improve the shopping experience and further extend retailers’ reach. Thundercomm is expanding its product lines to capture maximum value from both the consumer and enterprise IoT markets.

7. Robotics & Drones: Autel Robotics showcases EVO Max 4T drone

Autel Robotics has unveiled a new drone, the EVO Max 4T, which is capable of a variety of applications such as autonomous navigation, semi-autonomous flight missions, firefighting, and inspections. It is equipped with three high-quality cameras, capable of capturing footage from a distance of 1.2 km. Autel has also released the Dragonfish NEST infrastructure, which supports automated eVTOL systems, and the EVO NEST infrastructure, which can operate in all weather conditions.

Drones and eVTOLs will see higher adoption in the future with better efficiency in power consumption, security improvements and better regulatory compliances. These innovations will help Autel increase its presence in the enterprise market and remain competitive with companies like DJI.

8. Industrial IoT: ZVISION partners NVIDIA to improve industrial sensing

ZVISION, a provider of solid-state MEMS LiDAR solutions, is working with NVIDIA to use its robotics simulation platform Isaac Sim to develop advanced robot sensing capabilities and provide high-performance LiDAR solutions.

In Industry 4.0, robotics and simulation will play a key role. Its partnership with NVIDIA will allow ZVISION to expand its applications beyond vehicles, while also reducing costs and speeding up time-to-market for companies undergoing digital transformation. ZVISION offers both short- and long-range LiDAR options that can be tailored to various applications.

9. Platform: Tuya pushes PaaS 2.0, Cube for digital transformation

Tuya officially launched PaaS 2.0 to develop personalized solutions to fulfill global customers’ demands for “product differentiation and independent control”. For private cloud customers, it also unveiled Cube, an enterprise-level IoT platform deployment solution.

PaaS 2.0 is a unique innovation that can assist customers in reducing R&D costs and increasing product competitiveness. Tuya is focusing on public and enterprise cloud applications which are dominated by big cloud players like Alibaba cloud and Tencent cloud.

10. Healthcare: OMRON launches blood pressure monitor with ECG

OMRON introduced a new upper-arm blood pressure monitor with built-in ECG capabilities. This device aims to facilitate the early detection of heart disease by combining blood pressure monitoring and ECG technology. Utilizing home-monitored data, healthcare professionals will be able to provide early treatment and detect Atrial Fibrillation (AFib) at an early stage.

The company also announced the expansion of its digital healthcare apps with new features, such as the Personal Heart Health Coach and the Care Team within the OMRON Connect app. These new features will utilize AI technology to analyze vital data and provide patients with personalized guidance and exercise advice. OMRON’s innovative solution, leveraging technologies like AI, ML and IoT, will help healthcare professionals to better understand patient data through analysis.

Conclusion

CES 2023 has provided ample food for thought for industry executives. Each of the announcements made at the event has significant implications for the direction of the industry. For example, the satellite-related announcements made by chipset and module players could help IoT companies focus on new use cases. Additionally, with Wi-Fi 7 becoming mainstream and Matter-certified home products being rolled out, we can expect to see a significant uptick in demand for smart home products. These developments and more continue to shape the future of IoT and solidify the role technology plays in our daily lives. With more innovation, the possibilities are endless and we are excited to see how the industry will continue to evolve.

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NXP Q3 2022 Revenues Better Than Expected; Automotive, Mobile Segments Shine

NXP’s Q3 2022 revenues were $20 million more than the midpoint of the company’s previous guidance. The automotive, mobile and communication infrastructure segments performed better than expected. But the consumer-exposed IoT and Android mobile segments experienced weakness.
NCNR order book continued to surpass NXP’s 2023 supply capabilities.
For Q4, the company expects revenue of about $3.3 billion (± $100 million). This would mean an increment of 9% YoY with 4% downside sequentially. Non-GAAP gross margins are expected to be 57.8% (± 50 bp) and operating expenses are expected to be near $720 million (± $10 million).

NXP reported revenues of $3.45 billion in Q3 2022, an increase of 20.4% YoY and 4% QoQ, and $20 million more than the midpoint of the company’s previous guidance. NXP’s automotive, mobile and communication infrastructure segments performed well compared to Q2, while the industrial and IoT segment struggled. Specifically, the consumer-exposed IoT business, accounting for almost 40% of revenue, experienced weaker sell-through in the channel. However, demand from automotive and core industrial customers remained resilient supported by accelerated growth drivers. Due to higher factory utilization and sales volume, the non-GAAP gross profit was almost $2 billion and the margin was 58%, up 150 basis points YoY.

Sources: Company, Counterpoint

Automotive

NXP’s strong suit, the automotive segment accounted for 52.4% of the total revenue in Q3 and stood at $1.8 billion. This was a 24% YoY and 5% QoQ growth. Auto demand for silicon content continues to be robust with rising EV penetration and increased autonomy efforts. Strong growth for advanced analog, automotive processing and radar solutions was visible in Q3. However, due to supply constraints, there was a shortage of microcontrollers and analog products in automotive. The NCNR order book in this segment continued to outstrip the company’s supply capacity, which will remain “sold out” next year too.
The company also announced collaborations and a product launch in the third quarter. NXP’s S32 family of domain and zonal automotive processors is gaining traction among automakers as a preferred scalable platform for software-defined vehicles. A leading global automaker has selected the S32 MCUs/processors for its upcoming fleet of vehicles, starting 2025. NXP released the second-generation RFCMOS radar transceiver, TEF82xx, which supersedes the market-proven TEF810xx. This high-performance, single-chip solution supports short-, medium- and long-range radar applications including cascaded high-resolution imaging radar. Besides, NXP has collaborated with ChargePoint of the US for charging solutions and has also included its proprietary payment solutions to allow a seamless process for the customers.
For Q4 revenues, NXP is estimating this segment to be in the high teens and flattish on a YoY and QoQ basis respectively.

Industrial & IoT

The industrial and IoT segment’s revenue was $713 million, an increase of 17.5% YoY with no QoQ change and $32 million below the company’s guidance. The YoY increase was driven by the demand for crossover processors, 32-bit AMR MCUs, point-of-sale security solutions and more. As mentioned earlier, the consumer-exposed IoT business was much impacted. Since August, there was a global softening visible in the consumer IoT market with China getting affected strongly. Since NXP has a sizeable channel exposure in China and serves thousands of customers via distribution partners, the revenues in that domain took a hit.
Going forward, NXP could ship more into the channel but instead decided to limit channel inventory to 1.6 months (as opposed to the long-term target of 2.5 months) to prevent losses due to uncertain macro conditions. The company will closely gauge and adhere to market requirements depending on the developing demand and, if required, redirect it to other customers. With respect to on-hand inventory, the DIO increased five days sequentially to 99 days with more increments expected in the future.
For Q4, the industrial and IoT segment is expected to be in the negative territory in both YoY (low double-digit) and QoQ (high teens) terms.

Mobile

The mobile segment had revenues of $410 million, up 19% YoY and $30 million more than what was expected. Despite seeing weakness in the Android mobile market, NXP attained better than estimated revenues due to being exposed to the higher-end (which seems to be doing better) rather than the lower-end mobile phone market, increased attach rate for its secure mobile wallet, advanced analog high-speed interfaces, eSIM connectivity and more.
As Ultra-Wideband (UWB) penetration starts picking up in different verticals like mobile, IoT and cars, the company will be able to accrue more revenues in the future, from its UWB technology along with mobile wallet solutions. UWB use cases are already visible in China as UWB functionality in phones (flagship models) such as those from Apple, Samsung and Xiaomi. These smartphone players have collaborated with automakers to implement UWB-based solutions in cars to offer consumers secure car access. NXP expects four Chinese OEMs to offer this technology by the end of this year with a minimum of three more to follow in 2023. Kostal is using NXP’s UWB technology for its digital key system, which is being adopted by local company Nio.
For Q4, the company is expecting this segment to be up in the low single-digit range YoY and down in the upper single-digit range QoQ.

Communication Infrastructure & Other

The communication infrastructure and “other” segment’s revenue was $518 million, slightly above the guidance. Annual and quarterly growth rates were 14% and 4% respectively. The growth can be attributed to the demand for network edge equipment, RFID tagging solutions, cellular base stations and more.
NXP launched its new higher-power BTS7202 RX front-end modules (FEM) and BTS6403/6305 pre-drivers for 5G massive multiple-input multiple-output (MIMO) going up to 20 W per channel. These solutions complement its 32T32R active antenna systems and are developed using the company’s silicon germanium (SiGe) process. As 5G network coverage expands, there is a need for higher-power solutions to ensure consistent network quality along with reduced operational costs for MNOs. The newly announced devices can cater to these requirements with higher power per channel and modest consumption.
For Q4, the guidance seems positive and stands in the low-teens range YoY and flattish QoQ.

Capex Overview and Inventory

Cash flow generation continues to be excellent according to the company. In Q3, cash flow from operations stood at $1.14 billion compared to $819 in Q2. Net capex accounted for 8.2% of the revenue or $281 million. Due to supply constraints and strong demand (especially in the auto sector), internal utilization remained in the high 90s. More than 65% of the capacity was focused on IP proprietary mixed-signal, auto-centric capacity internally.
Capex for this year has decreased from 10% to 8% due to delays in equipment deliveries. For 2023, it will range between 6% and 8%.
From the demand perspective, there is weakness in the consumer IoT and Android mobile market, whereas the automotive and core industrial markets are witnessing resilient demand. On the supply side, the situation is reversed with the latter markets facing supply crunches and not being able to cater to the true demand. On the other hand, in the former markets, excessive shipping in channels is being prevented because of uncertain macro conditions.

Conclusion

NXP’s supply capabilities have improved over time but major end markets like auto and core industrial continue to face shortages. Prevalent weak macro conditions and extended China lockdowns will cause further hindrances to the revenue recovery of consumer-oriented markets. However, the company is being cautious and trying to mitigate costs by reducing its discretionary spending, lowering incentive compensations, and focusing on a strict approach to managing distribution channel inventory.

Webinar: New Wi-Fi 6 Patent Pool and Lift Royalty Payment Structure

Our Research Vice President Neil Shah recently spoke at the Sisvel webinar “New Wi-Fi 6 Patent Pool and Lift Royalty Payment Structure”.

About the webinar:

On July 19, Sisvel launched a patent pool on Wi-Fi 6 technology. Along with the Wi-Fi 6 pool, Sisvel debuted a new structured payment plan — the Licensing Incentive Framework for Technologies (LIFT).

The pool is the first for Wi-Fi 6 technology and LIFT is the first royalty plan designed to level the playing field for early licensees by tying royalty payments to pool penetration with other technology implementors. The webinar will discuss the new pool and explore LIFT’s operation and significance.

Speakers will include:

Mattia Fogliacco – Sisvel President will host the webinar and discuss how Sisvel’s approach to patent pools balances the interests of patent owners and implementors to accelerate market penetration and economic return for licensors and licensees.
Andrea Rombolà – Sisvel Wi-Fi 6 Program Manager will discuss pool details like royalty structure, patent owners and LIFT.
Neil Shah – Counterpoint Research’s Vice President, Research & Co-Founder who will provide with an overview of the Wi-Fi market and discuss the economic and social value that Wi-Fi has and continues to deliver.
Bowman Heiden – Co-Director at Center for Intellectual Property will describe the LIFT royalty program and how it incentivizes and protects early licensees.
Alan Fan – VP and Head of IPR Department at Huawei will discuss Huawei’s contribution to Wi-Fi, and Huawei’s perspective on joining the pool and becoming one of the first licensees as a large implementor.
Jin Sam Kwak – Founder and CEO at WILUS Inc. will discuss how the Wi-Fi standard was created, WILUS’s contributions to the standard, and the perspective of a research organization.
Jako Eleveld – VP and Head of IP Licensing at Philips will discuss the life cycle of a patent pool, and the role of enforcement action to create a level playing field for all implementors.

Watch the webinar recording: here

u-blox Continues Strong Growth in H1 2022

u-blox recorded an excellent H1 2022 with $311.9 million in total revenues, an increase of 47% from H1 2021 despite macroeconomic headwinds. The demand and interest in u-blox products remained strong across all markets and business segments. The strategy of remodeling and redesigning its products has worked for u-blox in dealing with specific shortages. This time, u-blox changed module design a lot to cut component shortages and clear backlogs.

H1 2022 highlights

u-blox’s gross profit increased 53.9% YoY in H1 2022 to reach $152.4 million.
The industrial segment captured 61% of the company’s total revenue and grew 62% YoY due to higher demand for automation and healthcare applications. The automotive segment also grew 62% YoY and its revenue contributed 28% to the total revenue. The consumer segment grew 18% YoY and captured 10% of the total revenue. In this segment, the growth mainly came from consumer telematics applications.
Americas and APAC regions grew more than 50% YoY while EMEA grew 30%. This growth was driven by industry-focused solutions for automation, mobility, healthcare and network applications. APAC’s growth despite China lockdowns was a testament to u-blox’s strong pipeline of design wins.
In the first half of 2022, modules and GNSS chips contributed 81% and 18% of the total revenue respectively. The module volume grew by 34.3% YoY in H1 2022 to reach nearly 27 million.

The ASP of modules and chipsets increased 20% and 46% YoY respectively due to supply chain constraints and product mix-ups.

GNSS modules

u-blox’s GNSS module shipments grew 56% YoY in H1 2022, contributing more than half of the total module revenue. The good quality and position accuracy of its GNSS products helped u-blox grow this market significantly. This year, it launched the smallest GNSS module, MIA-M10, with its latest technology targeting size-constrained applications like asset-tracking devices, pet trackers, livestock trackers and wearables. Xiaoan selected the u-blox M10 product to enhance the positioning performance of shared motorcycles and electric bicycles.

Wi-Fi/BT modules

In H1 2022, u-blox’s Wi-Fi/BT module segment grew 24% YoY to reach a revenue of nearly $30 million. In short-range radio modules (Wi-Fi and Bluetooth), u-blox continued to expand its capabilities. It launched Wi-Fi 6-based modules, which are ideal for industrial, smart home and mass-market applications.

Cellular IoT modules

In recent times, we have seen international module players merging their cellular IoT businesses to become more competitive in this space. u-blox is slowly recovering its cellular IoT module business. In H1 2022, u-blox’s cellular IoT module segment grew 36% compared to H1 2021, according to Counterpoint Research’s Cellular IoT Module Tracker Service. u-blox provided flexibility to its customers by launching new products. However, we expect u-blox will focus more on GNSS products and services compared to cellular IoT modules, considering growth opportunities.

GNSS chips

The quality of u-blox’s GNSS chipsets is far better than other players, which is helping u-blox witness continued growth in this market. With the rising demand for positioning and location-based ecosystems, u-blox will be able to record a multi-fold increase in its revenue by targeting applications like passenger and commercial vehicles, asset tracking, micro-mobility, surveillance, industrial and healthcare.

Market outlook

The steady expansion of u-blox’s production capacity and strong bookings resulted in this record revenue in H1 2022. Within the first half of 2022, its order book value doubled compared to the end of 2021, which makes u-blox well-positioned to continue to grow revenues and improve profitability. It is already managing well the supply constraint situation. We expect u-blox’s revenue will grow nearly 50% YoY in 2022.

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Supply Constraints Halt Netgear Growth Streak in 2021

Netgear, one of the leading manufacturers of gateways, routers, and enterprise networking solutions, has reported a sharp 31.6% YoY fall in its Q4 2021 revenues to $251.2 million. For 2021, the revenue fell 6.9% YoY to $1.17 billion. This goes contrary to the tremendous growth shown by the router and gateways industry in 2021, driven by the increase in capex for fiber deployment and significant demand for 4G/5G fixed wireless services.

Supply constraints hit revenues

Despite having a higher demand for premium SMB products, Netgear was not able to fulfil the orders due to factory closures following the outbreak of COVID-19’s Omicron variant.
The operating margins declined due to higher freight costs, as air passages were used more often to offset the delay due to the variant, and higher component costs owing to supply chain shortages.

SMB segment bright spot in 2021 amid supply constraints

SMB segment grew 15% compared to pre-pandemic levels. There was a large demand for the brand’s premium wireless solutions.
Netgear is offering a new suite of cloud-based video analytics solution ProAV, which has seen great demand.
The overall paid subscriber base for services such as Netgear Armor and Meural grew a healthy 33% annually to reach 584,000.
The strategic shift in focus to premium offerings helped drive the premium consumer segment revenues by 10% YoY in 2021 but couldn’t offset the overall decline due to supply constraints.
APAC region grew over 4.4% YoY, while Americas and Europe saw a decline of 38.6% and 25.8% respectively. However each region saw good demand for SMB products, but it was not able to offset the loss incurred by the consumer segment.
Shipments in Q4 2021 were about 2.7 million units with a third of them coming from gateways/routers.
Wireless products remained the key revenue driver for Netgear, contributing to 58% of the total revenues in 2021. Wireless products remain the key focus segment for the company going into 2022.
The brand saw strong demand for ORBI Mesh systems and Nighthawk gaming and non-gaming Wi-Fi 6 routers.
Netgear experienced a decline in retail and service provider channels due to supply shortages.

Outlook for 2022

Netgear expects the supply chain to remain constrained in Q1 2022 due to component shortages and factory closures. It expects normalcy in the supply chain from Q2 2022 provided there is no fresh COVID-19 outbreak.
Netgear will continue to take a hit on operating margins by using air transportation as a method to fulfil its pending orders. However, the brand will increase prices going forward to minimize the effect of transportation costs and increased component costs.
Netgear has announced a plethora of products this CES and expects its premium line-up of Nighthawk and Orbi Mesh routers to perform well in 2022. It will continue to focus more on higher-margin premium products that offer long-term stability for the company and have seen great demand in recent times. The company is betting big on Wi-Fi 6E routers and plans to ship them in big numbers this year.
Netgear expects to reach 750,000 more paid subscribers by the end of 2022 for its variety of online services. Since most businesses are opening offline in 2022, Netgear aims to offer cutting-edge solutions to those looking to upgrade their existing Wi-Fi 5 or below systems.
The brand has taken initiative to improve customer experience by overhauling its online purchase process.

Recommendations

The focus on increasing revenue through premium offerings should continue for better brand positioning. However, the brand should also focus on low- and mid-range products for developing markets, which have been generating significant revenue in the past.
Fixed wireless access (FWA) has been gaining momentum in North America for the past year and this year it is expected to grow further, entering more rural territories to bridge the digital divide. Netgear’s recent partnership with T-Mobile to offer 5G FWA products is a good step in promoting FWA. The brand should have more such partnerships to further increase its revenues through the service provider channel.

CES 2022: TP-Link, Netgear, Asus Drive Wi-Fi 6E Momentum

Despite several larger OEMs and Internet Service Providers pulling back from physically attending, the Consumer Electronics Show (CES) saw some interesting device launches for wireless routers by key industry leaders such as Netgear, Tp-Link, Asus and Linksys. Wi-Fi 6E is the pick of the technologies among the various OEMs worldwide and devices were launched with some new features such as rotating antennas, quad band support and blazing-fast downlink speeds.

Here are top product launches and announcements by OEMs at this year’s CES:

World’s First Rotating Antenna Router Archer AXE200 Omni by Tp-Link

TP-Link is the first OEM to launch a Wi-Fi router with self-adjusting antennas. This Wi-Fi 6E router automatically changes the orientation of its antennas to optimize bandwidth. It also won a CES 2022 Innovation Award. The device offers a maximum speed of up to 11 Gbps that works on 6 GHz band providing superfast and reliable internet connectivity for power users. The device is aimed at users who struggle with poor network reception from standard Wi-Fi routers.

The Archer AXE300 provides quad band support, offers speed up to 16 Gbps and can connect up to 350 devices. The router will be offered later this year and also has 10 gigabit/s ports to support fast wired internet connectivity. The quad band offers lowered network congestion with an additional 5 GHz band and a wide 6 GHz band for Wi-Fi 6E devices which offers to reduce interference and broaden coverage. The device is an ideal solution for small and medium enterprises, gamers and freelance power user who work on cloud systems, which can deliver unmatched speed and connectivity required by them.

TP-Link has has options for larger premises with the Deco XE200, which offers 11000 Mbps of maximum speed and covers 6500 square feet of real estate with just two devices and the area coverage can be increased by opting for the three device solution. TP-Link’s proprietary AI Mesh solution promises better connection response rates by automating bandwidth switching within the mesh system.

Comparison between top devices announced by TP-Link

TP-Link provides all its routers with HomeShield powered by Avira, which acts as a security solution to protect the network and vulnerable IoT devices connected on the network from hackers. Security has been a concern among the OEMs due to several vulnerabilities found in such devices last year. The brand has integrated EasyMesh intelligent software in its routers and range extenders to enable the easy building of mesh networks using any EasyMesh-supported device.

TP-Link has announced a new brand, Aginet, which will cater to Internet Service Providers’ growing demand for better connecting devices to improve their Quality of Service (QoS) to consumers. TP-Link will launch a separate product line under this brand with a philosophy of agile and pragmatic solutions for the market. There has been a significant increase in the fiber connections worldwide in the past two years and with growing demand for xPON routers and mesh network solutions this is a practical move by the brand to help them align their products better in the market.

Netgear builds on Wi-Fi 6E Leadership

The pandemic induced high demand for better internet connections and increased dependence on Wi-Fi for working, learning and entertainment from home. Modern WI-Fi routers require more bandwidth, more number of bands, and better antennas to work in congested environments with various IoT devices and network devices vying for connectivity.

Netgear has introduced several superfast Wi-Fi devices adopting the latest Wi-Fi 6E technology in the last quarter of 2021. Building on this, Netgear announced the Nighthawk RAXE300 Triband Wi-Fi router which offers throughput speeds of up to 7.8 Gbps, eight Wi-Fi streams and can cover up to 2500 sq. ft. With pre-optimised antennas, one 2.5-Gbps port and five 1-Gbps ports to offer superfast wired connectivity as well. At $399, Netgear has priced it competitively, it remains to be seen how the competition responds. Netgear had several devices mentioned by the CES 2022 Innovations Honors’ Board including the already launched Orbi 5G Wi-Fi 6 Mesh System.

With working from home, a feature of life under the pandemic, employers, especially smaller businesses, are looking for affordable and reliable solutions for their employees that offer an experience on par with office life. Netgear’s Orbi line-up offers such reliability and security to be deployed for work from home scenarios, these devices are affordable and offer mesh networking solutions for better connectivity.

Netgear announced a Game Booster Solution for gamers using Netgear gaming routers, to enhance their user experience by offering software to find better server connections, geo filters for locations and a ping heat map to reduce lag. This is a subscription-based service aimed at gamers, which is a large market, especially as the pandemic encouraged new gamers and even people taking up gaming professionally.

ASUS drops a Quadband gaming router, the ROG Rapture GT-AXE16000

ASUS announced a quadband gaming router, ROG Rapture GT-AXE16000, which offers speeds of up to 16000 Mbps, 6 GHz band support and six 1-gigabit/s ports to offer a strong gaming experience. The device is powered by a quad-core processor from Broadcom, which improves network throughput by 18%, compared to the previous generation device for accelerated data transfers. ASUS’s own RF technology improves signal coverage by 38% compared to its previous product, and the device offers intelligent AI Mesh capabilities to connect with another Wi-Fi 6E EasyMesh enabled router.

At USD649, ASUS is assuming gamers are willing to pay a premium for the speed the product offers. However, it’s currently the cheapest quadband option available. The brand has also updated its ROG GT-AX11000 Pro with a beefier chipset to offer improved Wi-Fi 6 performance.

Linksys offers an affordable Wi-Fi 6 device: Hydra Pro 6

Linksys has unveiled its latest dual-band Wi-Fi 6 router, Hydra Pro 6. The router is launched into a competitive space with some recently launched products from Netgear, TP-Link and D-Link, however Linksys is carving its own niche by offering similar specs but at lower prices that its competitors. The Hydra Pro 6 is powered by Qualcomm’s Immersive Home 216 Platform along with the access to the 160 MHz channel, which offers true Wi-Fi 6 experience with faster speeds up to 5.4 Gbps and better connectivity with up to 30+ connected devices. The device is perfect for regular home use cases and can be a good offering for Internet service providers as well.

Linksys has also announced a cloud managed access point for large spaces such as restaurants, retail stores and small businesses, which require high concurrent device connections with dense network congestion. It offers a cloud-based management system that helps the system administrator to control, configure and monitor remotely. The solution is powered by Qualcomm’s Networking Pro Platform 1200 that claims fast throughput and good reliability. It has 4 x 4 internal antennas for improved signal coverage.

Key Takeaways

The Wi-Fi market is poised to grow significantly in 2022 as we expect strong subscriber growth in most regions of the globe. Regulators are working to ensure that the 6 GHz band available for unlicensed use with the spectrum already available in North America and Europe. As a consequence, we will see a rapid adoption of Wi-Fi 6/6E devices this year.

The major focus for OEMS this year will be to increase signal coverage and strength and offer faster Wi-Fi 6/6E devices at a range of price points. OEMs and ISPs will work together to improve the Quality of Service (QoS) and as the fiber deployment increases across the globe more demand will arise from xPON devices. Mesh Network systems will be in demand too, as a lot of ISPs are bundling it with their services and the mesh systems are a better choice for users with larger premises and more connected devices.

Top

SMB declines for the first time in eight quarters

Connected home segment transition to premium continues

Service provider revenue declines by a quarter

Shipments decline by 25% YoY, COVID hits APAC revenues

Losses continue, but improvements visible

Strong growth in paid subscribers

Inventory correction to continue in Q2 2023

Key takeaways

Related research

SMB delivers record revenue

Connected Home segment sees weak demand

Service Provider revenue grew by 86% YoY

Shipments decline by 19% YoY

Operating margins remain under pressure

Strong growth recorded in paid subscribers

Netgear to experience sluggish demand in H1 2023

Key Takeaways

Related Research

Automotive

Industrial & IoT

Mobile

Communication infrastructure and other

Capex overview and inventory

Conclusion

Related Posts

Related Posts

­Supply constraints hit revenues

SMB segment bright spot in 2021 amid supply constraints

Outlook for 2022

Recommendations

Related Posts

World’s First Rotating Antenna Router Archer AXE200 Omni by Tp-Link

Netgear builds on Wi-Fi 6E Leadership

ASUS drops a Quadband gaming router, the ROG Rapture GT-AXE16000

Linksys offers an affordable Wi-Fi 6 device: Hydra Pro 6

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Supply constraints hit revenues