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WLAN chip vendors lower prices

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Need to reduce inventories
WLAN chip vendors have cut the prices of their chips in a bid to reduce inventories.

According to DigiTimes while some chipmakers are seeing a short supply for their products, WLAN gear is suffering. Chipmakers have also said that they have seen their orders plummet faster than a free falling team of elephants who have forgotten to pack their parachutes.

Punters from the notebook, netbook and motherboard sectors, have cut their orders. To make matters worse channel operators in Europe have also become more cautious on inventories. They are worried if demand in Europe has been affected by the debt crisis and if firms will stop buying WLAN.

This is apparently leaving a large amount of inventory in storehouses. The suppliers are hoping that a drop in price will get OEMs buying again. It also hopes that designers will start factoring in the chips because they can get them dirt cheap.

Digitimes did not say how much it expects the prices to drop. Our guess based on shuffling tarot cards and asking around is about 10 per cent.

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