Linksys goes from 0 to 600,000 in no time
In January 2000, Linksys had sold no cable/DSL routers at all. Twelve months later, it had shipped 600,000 Ethernet cable/DSL routers, beating out Cisco with a 36 percent in the SOHO market, according the Cahners In-Stat, a research group. What's the secret to practically overnight success?
"We began with our four-port model and began shipping in January 2000, after doing a pre-announcement at Comdex," Karen Sohl, corporate communications manager for Linksys tells CED. " We sold online [through channel partners] at Amazon and Outpost and after it went to major computer retailers like Staples and CompUSA, it just snowballed from there.
"People were looking for this type of product. It has Internet security as well as a networking device. Other products have been selling the same thing, but the major difference between theirs and ours is the 10/100 switch which gives dedicated bandwidth for each user. Linksys also broke the price barrier, coming in at $199, compared to $399 to $1000," she says.
"Our target market currently is strictly geared toward home users who are using cable or DSL, and small or medium-sized businesses."
Linksys will announce seven new routers aimed at the home office, small to mediumbusiness and corporate branch office markets in 1Q 2000.