BOSTON, May 26 /PRNewswire/ -- Demand for enterprise routers, particularly
secure routers, remains high even as revenue continues to slip quarter-over-
quarter across most enterprise router categories due to ongoing price
pressure, says Infonetics Research in its Enterprise Routers quarterly
worldwide market share and forecast report.
Worldwide enterprise router revenue totaled $750 million in 1Q05, down 9%
from 4Q04, and 20% lower than a year ago, while unit shipments increased 4%.
This trend is expected to continue, with unit shipments growing to 1.9 million
in 2008.
The increase in overall unit shipments comes mostly from the burgeoning
secure enterprise router segment, which jumped 19% to 53,000 units between
4Q04 and 1Q05, while revenue dipped 3% to $96.4 million. Meanwhile, the
standard enterprise router segment eked out a mere 1% unit shipment increase
while revenue dropped 9% to $653 million in 1Q05. Unit revenue has been
dropping faster in the standard portion of the market, so many vendors are
eyeing the more lucrative secure router segment.
"Overall demand for routers was solid in the first quarter, as evidenced
by the 4% sequential increase in unit shipments, but vendors saw significant
pricing pressure, and revenue per unit dropped almost across the board," said.
"The 11% revenue-per-unit decrease at Cisco had the most profound effect on
the market."
1Q05 Market Highlights
-- Cisco continues to lead the worldwide enterprise router market by a
wide margin, capturing the majority of both revenue and unit market
share
-- Vanguard is second for revenue, Allied Telesyn is second in unit
shipments
-- High-end routers make up 50% of worldwide enterprise router revenue,
mid-range routers make up 47%, and low-end/SOHO routers make up 2%
-- Secure routers now make up 13% of worldwide revenue, up 1% from
4Q04, and will grow to 27% of the market by 2008
-- 41% of total enterprise router revenue was from North America, 36%
from EMEA, 19% from Asia Pacific, and 3% from CALA
Enterprise Routers tracks standard and secure high-end, mid-range, and
low-end/SOHO routers. Forecasts and market share are updated quarterly and
cover all regions (worldwide, North America, EMEA, Asia Pacific, and CALA).
Companies tracked in this service include 3Com, ADTRAN, Allied Telesyn,
Cisco, Enterasys, Huawei, Juniper, Nortel, Siemens, Tasman, Vanguard, and
others.
For the table of contents, go to http://www.info.infonetics.com. For sales,
contact Larry Howard, vice president, at larry@infonetics.com,
408-583-0011 x335.
Infonetics Research (http://www.infonetics.com) is an international market
research and consulting firm covering the data networking and
telecommunications industries in North America, Europe, and Asia. Infonetics
helps companies develop, market, and sell products and services by providing
objective analysis of end-users, service providers, and product manufacturers.
Infonetics has offices in Silicon Valley, the Boston Metro Area, and London.
SOURCE Infonetics Research
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Related links:
http://www.infonetics.com
CONTACT:
Matthias Machowinski, Directing Analyst,
Enterprise Voice & Data of Infonetics Research, Inc.,
+1-781-933-9868, or matthias@infonetics.com
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