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Prices of WiMAX CPE products to continue to fall in 2Q10

Export prices for WiMAX CPE products shipped by Taiwan network equipment makers are likely to fall another 20-30% in the second quarter of 2010 after prices of those devices already dropped over 40% on average in 2009, according to industry sources.

Unit prices of WiMAX network cards, for example, have dropped from US$80-90 to US$50-60 over the past year and may further decline to US$40-50 in the second quarter of 2010, the sources indicated.

However, the rate of price reduction is expected to slow down in the second half of 2010 as WiMAX chip vendors are likely to lower their quotes for the new-generation solutions, using 65nm manufacturing process, the sources said.

The purchasing volume for WiMAX CPE products from telecom carriers will be crucial to the pricing of CPE devices in the second half of 2010, added the sources.

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