K56flex Muscles In On X2 Shelf Space
(08/25/97; 5:00 p.m. EDT)
By Todd Wasserman, Computer Retail Week
Shelf space for K56flex modems jumped to nearly 44 percent of all
56-kilobit-per-second modems in July as most newly introduced modems
were of that design, according to researcher VisionQuest 2000.
Ernest Raper, an analyst for the Moorpark, Calif., research company, said "a
steady stream of new product introductions based on K56flex" accounted for
the increase in shelf space. But strong sell-through for modems based on
3Com/U.S. Robotics' competing x2 design did as well. X2 modems continue
to dominate shelf space, claiming 67 percent thus far in 1997, he said.
The competition has driven the average street price of PC-compatible
56-Kbps modems down by about $25 since their introduction in February,
he said.
In addition, some 56-Kbps modem vendors, including Diamond Multimedia
and IBM, have already announced price drops and more are on the way,
according to Jennifer Glickman, an analyst with ARS Research, in Dallas.
She said Boca Research will soon cut the suggested retail price of its
56-Kbps modems. Boca's $50 mail-in rebate offer ended Aug. 19, and,
according to ARS research, its estimate of the "best" reseller prices on
Boca's internal and external 56-Kbps modems have dropped from $122.86
to $109.95 and from $137.80 to $129.68, respectively.
ARS adjusts a reseller cost -- the price retailers pay for a product -- to what
retailers pay when they buy in bulk. Boca could not be reached for comment.
Glickman said she is also predicting price cuts by Practical Peripherals, a unit
of Hayes Microprocessors, and BestData.
Overall, 56-Kbps modems, with 42 percent of shelf space, seem to be
gaining on 33.6-Kbps modems, with 45 percent. Raper said 56-Kbps
modems will hold about 60 percent to 70 percent of shelf space by the end
of the year.
Street prices for 33.6-Kbps modems, meanwhile, continue to freefall,
according to VisionQuest. On average, street prices are $45 less for
PC-compatible 33.6-Kbps modems last month than they were in July 1996. |
