Taiwan-based network-equipment makers are expected to benefit from the increasing deployment in business-use networking devices by leading players, including Cisco Systems, Nortel Networks, D-Link and Netgear, according to sources at Taiwan network-equipment makers.
Although some market sources have been skeptical about D-Link's outlook in the North America market this year, D-Link said that its business in North America will remain robust in 2008 as the company has been actively increasing of the ratio of business-use network-equipment in that market.
D-Link's sales of business-use networking devices to emerging markets are also expected to grow significantly in 2008 due to the rise of small- and medium-size businesses (SMBs) in those markets, D-Link said.
Accton Technology and Alpha Networks both claimed that orders for their business-use switch products have been strong since the beginning of this year, with Alpha stating that it has witnessed increasing outsourcing from international brand vendors despite the uncertainty in the market.
Accton expects its revenues for 2008 to grow 30% from a year earlier, buoyed by growth in business network-equipment and telecom devices.
Sercomm, which experienced on quarter growth of its gross margins in 2007 due to its accelerated development of network-equipment products, such as VPN routers for SMBs, is also positive about the outlook for network-equipment products from the SMB sector.
From: http://www.digitimes.com/systems/a20080227PD210.html--
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