Apple to Stop Developing Wireless Routers

By Vishal Goel, | November 22, 2016

Apple has stopped developing wireless routers. (YouTube)

Apple has stopped developing wireless routers. (YouTube)

Apple Inc. has decided to stop the development of wireless routers. The news comes after the tech-giant disbanded its division that develops the routers. Although the decision has not been publicly announced, the company has been shutting down its wireless router team over the past year, dispersing the engineers to join other product development groups, including the Apple TV.

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The move is yet another one aimed at sharpening Apple's focus on consumer products which have generated the bulk of its revenue, according to Bloomberg.

Apple has tried hard to match the standards set by other wireless routers companies by releasing frequent updates. However, since 2013, the company has not refreshed its routers. The decision to disband the team clearly indicates the company is not currently pushing forward with the new versions of its routers.

Apple had released three types of wireless routers namely the AirPort Express, AirPort Extreme, and AirPort Time capsule. To be clear, routers are access points that connect laptops, phones, and other such WiFi-enabled devices to the web without a cable. Additionally, the AirPort Time capsule doubles as a backup storage hard drive for Mac computers. These products, which cost $99, $199, and $299 respectively, make up a very little portion of Apple's revenue and thus, belong to Apple's "other products" category in its financial statements. The category generated $11.1 billion in fiscal 2016, or about only five percent of the company's total sales. This category also includes the Apple Watch and the Apple TV.

It is reportedly quite difficult for router makers to enhance the product on their own because they rely heavily on the chipmakers like Broadcom Ltd. to develop the fundamental components. While router makers can enhance the design of their products including the number of antennas and the controlling software, their dependence on chipmakers inhibits them from offering new, higher-performing models on their own.

Apple has always focussed more on the integration of the control of its devices into iOS. AirPorts have historically lagged behind those of other companies such as D-Link Corp., Netgear Inc., and Belkin International Inc.

Earlier this year, Apple stopped making external monitors. In October, the company adopted a new strategy by selling new high-resolution screens for professional users with LG Electronics Inc.

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