In-Stat/MDR Announces 1Q 02 Networking Quarterlies Results

Communications Today, May 31, 2002

High-tech market research firm In-Stat/MDR reports that the Layer 2/3/4-7 switch market shrank 4 percent in the first quarter as ports shipped decreased to 35.4 million, from 36.8 million in the fourth quarter last year. Revenues decreased 8 percent to $3.3 billion in the January-March period. Both ports and revenues were driven by Gigabit Ethernet and Layer 3 switches in general.

The total router market remained flat quarter over quarter, with only a 1 percent decline in from the fourth quarter to the first quarter. Cisco Systems [CSCO] remained the dominant vendor in the enterprise market, with 93 percent market share in unit shipments. Nortel Networks [NT] was the closest competitor to Cisco in this space, and unless other edge router vendors begin selling to enterprises, Cisco will remain dominant.

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