Chinese owned networking Company TP Link has delivered a record $13M profit up from $11.5M in 2020, they have also increased revenues in Australia by $13M during COVID lock downs.

Despite fears over the links between the Chinese Communist Party and TP Link, Australians are buying up their cheap routers with the Company delivering $102M in revenue in 2021.

This was up from the $89M the business delivered in 2020 according to their latest ASIC filings.

The local subsidary also paid their parent Company a $15.2M dividend.

The business that lifted marketing expenditure from $1.9M to $2.4M has also widened their retail network in Australia.

In comparison US network Company Netgear only managed $92M in revenue in the last financial year despite lifting their marketing expenses from $5.8M to $9M.

Netgear delivered a profit of $1.4M which was significantly less than the $13M profit delivered by TP Link who have also expanded their range of products.

Netgear Marketing Manager in Australia Sarah Dali who joined Netgear in July 2020 after a short stint at Samsung has not said why revenues at Netgear fell from $93M in 2020 to $92M when brands such as TP Link were able to significantly lift revenues during the same COVID lock down period.

Some observers suspect that Netgear marketing strategy of going after the premium end of the networking market has failed due to the poor profits the Company who has made losses in the USA is delivering.

In Australia, the market leaders in the networking market are D Link and TPG with ASUS also challenging Netgear in the premium end of the gaming market with their brand also appealing to gamers who are buying the Companies gaming PC’s and monitors.

Insiders have told ChannelNews that TP Link were able to grow revenues because they had access to stock during COVID lockdowns.

We have also been told that TP Link were able to grow revenues because they had access to stock during COVID lockdowns. We also understand that TP Link is set to start discounting routers and networking gear due to the Chinese Company being overstocked globally and some “massive networking deals” will be offered during Black Friday sales.