EMEA LAN Switch Market Sees Decline in Port Shipments and Revenues in 1Q05

EMEA

IDC: The EMEA LAN switch market declined strongly in 1Q05 both in port shipments and revenues compared to 4Q04, after the market experienced high growth in shipments and revenues between 3Q04 and 4Q04. Port shipments declined 6.9% from 17.5 million in 4Q04 to 16.3 million in 1Q05, while revenues fell 6.0% to $1.1 billion in 1Q05 compared to $1.2 billion in 4Q04. The main reason for the overall decline in the market was a fall in Fast Ethernet port shipments and revenues — shipments declined 10.4% to 13.1 million and revenues fell 15.8% to $391.4 million. At the same time, however, the average sales price (ASP) of LAN switches increased 1.0% to $69.10 per port in 1Q05, compared to a decline of 1.5% in 3Q04–4Q04. The increase in ASP is the result of the continuing increase in popularity of Gigabit Ethernet LAN switches.

Two vendors, Accton/SMC and Netgear, recorded double-digit growth in both port shipments and revenues in 1Q05, but Cisco was the largest vendor in revenue terms after it recaptured a large part of the revenue market share it lost in the previous period. HP Procurve, Cisco's main rival, lost 2.6% revenue market share. The other major LAN switch vendors were 3Com, Nortel, and D-Link. The overall EMEA LAN switch market declined in 1Q05, as Fast Ethernet revenues declined rapidly and growth in revenues in the Gigabit Ethernet segment slowed amid fierce price competition,.

EMEA LAN Switch Tracker Publ 20050613 LAN switch?