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It was a dull year for D-Link, with the company growing a mere 5% to Rs 174
crore. Key products were hit by changing market dynamics–there was a shift in
the dial-up modems market, from external to internal modems. Though modem sales
increased in volumes, there was a drastic fall in value terms. Prices of leased
line, ISDN, ADSL and cable modems fell by about 50%. Sales of LAN hubs also
dropped as the market shifted from hubs to switches.