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| Gartner Dataquest Says Worldwide Cable Modem Market Grew 19 Percent in Third Quarter of 2002 | ||||||||||||||||||||||||||||||||||||||||||||||||
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SAN JOSE, Calif., December 5, 2002 — Worldwide cable modem market shipments totaled more than 3 million units in the third quarter of 2002, a 19.4 percent increase from the same period last year, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). Worldwide cable modem shipments totaled 2.5 million units in the third quarter of 2001.
"North America continues to see strong demand for cable broadband access services in the third quarter of 2002, and shipments of cable modems reflect this trend," said Patti Reali, principal analyst for Gartner Dataquest's worldwide Telecommunications group. "U.S.-based vendors will start to see even more intense competition for the low-end, simple-functionality modems from the Asian-based manufacturers, and until the market launches advanced services that require more complex, higher-functionality CPE devices enabling home networking and other applications, prices will continue to fall," "Continued introduction of new broadband cable markets and the migration of dial-up users to these access modalities will continue to drive demand for cable modems," Reali added. "However, price will become an issue as the market moves into the 'early majority' phase of adoption." Motorola Broadband Communications remained No. 1 with 32.6 percent of the market (see Table 1). The company continued to do well in the Data Over Cable Service Interface Specification (DOCSIS) space, where it was also the top vendor. Terayon fell from No. 2 to the No. 5 spot because of a weak quarter in the non-DOCSIS segment. Gartner Dataquest found that non-DOCSIS units accounted for only 1.3 percent of worldwide cable modem CPE units in the third quarter of 2002. Table 1 Worldwide Cable Modem CPE Vendor Unit Shipment Estimates, 3Q02 (Thousands of Units)
Source: Gartner Dataquest (December 2002)
Gartner Dataquest expects the market to shift away from recognized retail brands, to units produced by original design manufacturers (ODMs) with aggressive support from cable modem chip vendors, essentially cutting out the need for name brand vendors. This trend has already begun in the Asia/Pacific region. "The product path for cable broadband modems is mimicking the trajectory of the analog modem market, with the exception that cable CPE devices are not likely to 'go inside' the computer any time soon. Moving cable modems internally as host-based devices, presents its own set of challenges that many cable operators and their data services units prefer not to deal with at this time," said Reali. "Despite this, Asian OEMs are already sharing dominance in the market with Motorola Broadband Communications Sector, which has its own facilities in Taiwan, as devices for other top worldwide vendors such as Toshiba, Thomson and Terayon, among others, are all made there." Additional analysis is available in the Gartner Dataquest Market Statistics report "Worldwide Cable Modem Shipments Increase 5 Percent in 3Q02." This report provides detailed statistics for the worldwide cable modem market. This analysis is provided by Gartner Dataquest's worldwide Telecommunications and Networking group. This group provides an analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunications issues, please visit Gartner's Telecommunications Focus Area at www.gartner.com/telecom-mkt. To purchase the report or subscribe to Gartner Dataquest programs, call 408-468-8000 or go to www.gartner.com. Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients leverage technology to achieve business success. Gartner's businesses consist of Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including more than 1,000 research analysts and consultants, in more than 75 locations worldwide. Fiscal 2002 revenue totaled $907 million. For more information, visit www.gartner.com. |
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Contact: Christy Pettey Gartner +1 408 468 8312 christy.pettey@gartner.com |
