01.15.2001
ADSL competition heats up

Askey Computer Corp. (2366 ‘Ya Xu’) ranked first in 2000 for Taiwan ADSL production with 410,000 sets produced. Zyxel (2391 ‘He Qin’) and Ambit Microsystems Corp. (2386 ‘Guo Dian’) came in joint second with production of 300,000 sets each. ADSL suppliers’ main concerns for 2001 are on how they can retain profit margins which are already-small, and are now typical of the ADSL market. With innovation from upstream chip companies, we expect the standardization and the interconnection of ADSL to improve, and barriers to the ADSL market to eventually dwindle. Increasing competition will force ADSL prices to fall even faster and further.
Benny Lo