Over the past year, Apple has started shutting down its wireless router division. The division creates Apple products like AirPort Extreme, AirPort Express and Time Capsule, all of which operate via wireless connectivity. Apple has already begun assigning the engineers from that department to other product development teams.
Since 2013, Apple has not introduced new Wi-Fi router in the market. The company's decision to break the team simply shows that it is not moving forward with new routers versions. Probably, the product line does not generate ample revenue for the company to come up with such decision.
Wireless Routers are entry points that connect iPhones, Laptops, PCs, and other devices to the worldwide web without the use of cable. Currently, Apple sells three wireless routers, the AirPort Express, AirPort Extreme and AirPort Time Capsule. According to Bloomberg, these products make up a small portion of the company's revenue in its financial statements. These products belong to the category Other Products, which includes Apple Watch and Apple TV. The Other Products generated $11.1 billion or just 5 percent of the total sales in the fiscal year 2016.
The essential part of the technology used in routers is sourced from chipmakers like Broadcom Ltd. These chipmakers advance wifi technology by creating important components. The wireless router makers can only distinguish themselves from each other through softwares and antennas. The advancement however to offer new and enhanced-performing models are dependent on the chipmakers.
Apple's AirPort products have historically waded behind other companies like Netgear Inc., Belkin International, and D-Link Corp, all of which have embraced changes in new standards. And with the addition of new players in the market like Eero and Google Wifi, Apple has decided to axe the product rather than reinvent according to Techcrunch.
Earlier this year, Apple has also discontinued making its own external screens. It also introduced a new strategy by selling high-resolution screens for professional users like LG Electronics Inc. Perhaps Apple's move to discontinue producing wireless routers is its way of sharpening its focus on products that produce bigger chunks of revenue.