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Netgear's products share shelf space with products from Cisco's Linksys, along with brands like D-Link, Buffalo and SMC Networks.
All of these firms are riding the growth of home broadband use. According to Nielsen/NetRatings, 53% of U.S. homes have high-speed connections to the Internet instead of dial-up.
Many of these homes have more than one computer. So the easiest way to share the connection is with wireless networking, also known as Wi-Fi. Wireless products account for over half of Netgear's sales.
Netgear and its rivals have similar business models. First, design products with off-the-shelf chips and software from other firms. Then have Taiwan-based manufacturers build the actual products.
All that keeps R&D costs to a minimum.
For its line of small office network switches, Netgear relies on software and chips from Marvell, (MRVL) Broadcom (BRCM) and Atheros Communications. (ATHR) Netgear's wireless music player employs software from Digital 5 and Mediabolic. Netgear's wireless antenna comes from Intellon.
The latest push: incorporate voice over Internet protocol (VoIP) into wireless routers. VoIP takes regular phone calls and puts them over broadband connections.
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