Apple has reportedly ditched its wireless router biz.
According to Bloomberg, the Cupertino, CA-based company is trying to focus on consumer products that generate more revenue, so it's shutting down the wireless router team responsible for the AirPort Express, AirPort Extreme, and AirPort Time Capsule, which cost $99, $199, and $299, respectively. Engineers on the team have been moved to other development groups, like Apple TV.
Wireless routers make up a small portion of Apple's revenue. They're lumped into the "other products" category in financial statements. This entire category only makes up about 5 per cent of Apple's sales. Although the company still sells its three wireless routers, including the Time Capsule, which doubles as a backup storage, it hasn't updated any of the products in at least three years.
Since then, companies like Eero, Netgear, Google, and others have begun manufacturing router systems that are not only more affordable but also provide mesh-like, better home coverage. Bloomberg didn't mention these competitors and whether they've whittled down Apple's share of the market, but it is worth noting that Apple is rumoured to be working on a speaker with built-in Siri.
It would make sense for Apple to focus development efforts and move engineers to that upcoming product for the connected home, especially if it doesn't see a profitable future in home routers any more, but that's just speculation.