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Demand for Skype Wi-Fi phones picking up
http://digitimes.com/systems/a20070725PD216.html
Irene Chen, Taipei; Steve Shen, DIGITIMES [Wednesday 25 July 2007]

Demand for Skype Wi-Fi phones has been strong and is still growing since Internet phone service provider Skype launched its 'unlimited calls' preferential rate program early this year, according to market sources.

Improved interfaces, more mature functions and declining prices also have combined to push up demand, said the sources, noting that the unit price of Skype-enable Wi-Fi phones has declined from a high of over US$200 to the recent level of around US$100-150.

Linksys, a division of Cisco Systems, reportedly ran out of Skype Wi-Fi phones in the US and was required to allocate inventory from other markets, the sources noted.

While Linksys is outsourcing the production of its branded Skype Wi-Fi phones to Wistron NeWeb, other vendors are subcontracting production to other makers, including Accton Technology and Inventec Appliances, the sources added.

According to eBay, Skype generated revenues of US$89 million in the second quarter of this year, up 102% from a year ago. The second quarter also was the second consecutive quarter of profitability for Skype, noted eBay.

Prices of branded Skype Wi-Fi phones in the US (US$)

Brand
Retail channel price
Manufacturer

Linksys
119.99
Wistron NeWeb

Netgear
199.99
Inventec Appliances

Belkin
148.99
Accton

Panasonic
319.96
Panasonic

SMC
153.99
Accton


Source: Compiled by Digitimes, July 2007