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July 9, 1999
Modem sales up 88.4 per centIDC's quarterly modem tracker reveals that modem sales in 1998-99 registered an increase of 88.4 per cent in unit terms and 9.6 per cent in value terms over 1997-98.
IDC estimates that modem shipments reached 291672 units, with revenues touching Rs 1.260 billion.
Intense competition, especially from Taiwanese and other Asian vendors, has led to a dramatic reduction in prices over the previous year.
Among the various speed categories, the 33.6 KBPS modems dominate the total modem market. However, the share of 33.6 KBPS among all speed categories is fast declining as 56 KBPS modems have been registering a steady increase in their sales quarter after quarter.
Price was perhaps the only factor that mattered in 1998-99. Most vendors decided to play only on price, because of which the Average Sales Values of modems came down drastically during the year.
The importance of using a low-price strategy is clearly evident from the fact that the ASVs of the top three vendors were among the lowest in the market. These three vendors, namely D-Link, Lanbit and GVC, together captured almost 63 percent of the market in unit terms.
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