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Demand for Skype Wi-Fi phones has been strong and is still growing since Internet phone service provider Skype launched its 'unlimited calls' preferential rate program early this year, according to market sources.

Improved interfaces, more mature functions and declining prices also have combined to push up demand, said the sources, noting that the unit price of Skype-enable Wi-Fi phones has declined from a high of over US$200 to the recent level of around US$100-150.

Linksys, a division of Cisco Systems, reportedly ran out of Skype Wi-Fi phones in the US and was required to allocate inventory from other markets, the sources noted.