Broadcom has revised its outlook for 802.11n chips, envisioning that 802.11n is unlikely to replace 802.11g as the mainstream technology standard for the WLAN market, according to Michael Hurlston, vice president and general manager of Broadcom's WLAN business unit.

The price difference between 802.11n and 802.11g solutions was a fundamental factor in Broadcom's shift in outlook for 802.11n chips, Hurlston added.

Since the manufacture of 802.11g chips is mature and the prices for 802.11g devices are very competitive, 802.11g will continue to be the mainstream for the industry, Hurlston stated.

Broadcom originally expected 802.11n to account for about 25% of global WLAN chip sales by the end of 2007, but has revised the ratio downward to 20% due to slower-than-expected sales of 802.11n chips, Hurlston revealed.

The market share gap between 802.11n and 802.11g could still narrow but 802.11g chips will continue to hold a 50% share of the global WLAN chip market, said Hurlston.

Although leading PC vendors, including Hewlett-Packard (HP), Acer and Apple, have launched high-end notebook PCs with built-in 802.11n modules, the bulk of entry- to mid-range notebooks, the growth driver of the PC industry, are normally equipped with an 802.11g module, Hurlston indicated.

Telecom operators are also sensitive to price and they prefer to utilize 802.11g ADSL broadband routers, instead of using 802.11n chips, which are almost double in price compared to their 802.11g counterparts.

Despite current slow sales of 802.11n chips, Broadcom will continue to commit investment in the development of 802.11n parts, as there is still a clear indication in demand for 802.11n applications, mainly from the multimedia segment such as IPTV and IP set-top box (STB), Hurlston said.

Broadcom will adjust its strategy to focus more on developing chips offering complete integrated solutions and yet available at low costs, Hurlston stated, noting that the company is expected to launch its new version 802.11n chips in the second half of the year.