After quite a competitive holiday season, Netgear established its place in the WiFi 5 market, looking into joining on the WiFi 6 craze as it is coming in. In the Q1 of 2020, Netgear is expecting to receive profits in range of up to $220 million, which is almost 15% down over the last year’s high point. This is why Netgear is looking into adjusting their operating margins to 3%, which is quite a bit less than 6.5% as it was in 2019.

Bryan Murray, Netgear’s CFO stated that this decline is mostly due to a cold start to the year, which was affected with the company’s move to start working on WiFi 6 products. Their decision to maintain market share by promotions will definitely help in establishing Netgear as one of the lead players in the 5G product range, but investors are not on the same bandwagon as it stands.

Netgear’s revenue has seen various declines across worldwide markets. The biggest decline was in Europe, where it declined 14.1%, followed by Americas region where it declined by 11.1% and with Middle East and Africa region dropping by 5.9%.

Source: The Motley Fool


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