Netgear’s Asia Pacific business of which Australia is the major contributor, has taken a major hit, with regional revenues slumping as consumers turn away from the company’s premium-priced Wi-Fi routers, extenders, and mobile hotspots.

In the three months to September 28, Netgear reported Asia Pacific sales of US$19.5 million, down from US$942 million in the prior quarter.

Sarah Dali Netgears Asia Pacific Marketing Manager has failed to say what is impacting the Australian business which has struggled ever since she joined the Company in 2020 after a short stint in the Samsung Marketing team.

 

In the nine months ending on September 28 APAC revenues fell from US$66.8 to US$61.5.

The company’s mobile division — which includes 5G hotspot hubs sold through retailers such as Telstra and JB Hi-Fi — also recorded weaker results, with overall global revenues falling 20.7% year-on-year to US$21.1 million.

Retailers in Australia, which represents the bulk of Netgear’s Asia Pacific operations, say consumers are opting for more affordable alternatives amid a perception that the NBN cannot deliver the high speeds needed to justify Netgear’s premium prices.

Globally, Netgear’s Home Networking category generated US$72.6 million, a 6.6% decline year-on-year, with a gross margin of 27.7%, according to CEO CJ Prober.

Prober said the company’s expanding Wi-Fi 7 portfolio provided some relief amid a challenging environment.

“Although the market remained highly competitive, we benefited from strength in our higher-margin direct-to-consumer channel,” Prober said. “Our recently launched Orbi 370, Netgear’s most affordable Wi-Fi 7 mesh system, performed well.”

He added that Netgear gained share in Wi-Fi 7 routers and mesh systems in the U.S. market during the quarter and remains confident in the long-term growth potential of the home networking segment.

Netgear is also betting on the expansion of its subscription services to drive future revenue growth. The company’s Armor cybersecurity subscription service delivered US$37.9 million in quarterly revenue, up 17.2% year-on-year, and remains a strategic focus.

While its mobile division continues to face pressure, Prober said demand remains solid for Netgear’s premium mobile products. The company is seeking new retail and distribution partners and plans to launch the M7 Pro mobile hotspot into new markets soon.

“We have exciting new products coming to market that will expand our addressable base,” Prober said. “Over the long term, our expertise in mobile products will strengthen both our consumer and enterprise businesses through differentiated, integrated experiences.”