Gartner Says Worldwide Ethernet Switch Shipments Increased 10 Percent in Third Quarter of 2003
STAMFORD, Conn., November 13, 2003 — Worldwide Ethernet switch port shipments totaled 43.5 million units in the third quarter of 2003, a 10 percent increase from the third quarter of 2002, according to preliminary results by Gartner, Inc. However, worldwide Ethernet switch vendor revenue declined 10 percent from a year ago to $2.6 billion.
"Viewed in context with other factors, these results suggest overall market conditions are improving," said Rachna Ahlawat, principal analyst for Gartner's Enterprise Networking and Communications Worldwide group. "However, it remains to be seen if the increase in revenue is just seasonal. The networking market is dependent on economic conditions and their effect on the business cycle."
Cisco Systems continued to dominate the market in the third quarter of 2003, claiming 73.6 percent of worldwide Ethernet switching revenue (see Table 1) and 37.4 percent of port shipments (see Table 2). Overall ranking of the vendors shifted, with Extreme Networks dropping out of the top 5. Foundry Networks had a good quarter with 15.5 percent growth and jumped two spots to No. 4.
Table 1
Preliminary Worldwide Ethernet Switching Vendor Revenue Estimates for 3Q03
(Millions of Dollars)
Company
3Q03 Revenue
3Q03 Market Share (%)
3Q02 Revenue
3Q02 Market Share (%)
Growth (%)
Cisco
1,913.1
73.6
2,094.5
72.7
-8.7
Nortel
99.4
3.8
103.3
3.6
-3.8
3Com
96.9
3.7
113.1
3.9
-14.3
Foundry
80.4
3.1
69.6
2.4
15.5
Hewlett-Packard
79.1
3.0
52.7
1.8
50.0
Others
331.8
12.7
444.1
15.4
-25.3
Total
2,600.7
100.0
2,877.4
100.0
-9.6
Source: Gartner Dataquest (November 2003)
Results over the last eight quarters show signs of market consolidation. The market share of the top seven vendors increased to 92 percent in the third quarter of 2003, from 85 percent in the fourth quarter of 2001, taking away market revenue from other vendors during the same period.
Table 2
Preliminary Worldwide Ethernet Switching Vendor Port Shipments Estimates for 3Q03
(Thousands of Units)
Company
3Q03 Shipments
3Q03 Market Share (%)
3Q02 Shipments
3Q02 Market Share (%)
Growth (%)
Cisco
16,299.5
37.4
16,207.8
40.9
1.0
3Com
5,102.0
11.7
4,292.0
10.8
18.9
D-Link
3,155.6
7.2
3,442.3
8.7
-8.3
Hewlett-Packard
2,920.9
6.7
2,088.1
5.3
39.9
Netgear
2,498.7
5.7
1,989.1
5.0
25.6
Others
13,554.8
31.1
13,561.4
34.3
18.4
Total
43,531.5
100.0
39,591,5
100.0
10.0
Source: Gartner Dataquest (November 2003)
Additional information is available in the Gartner Dataquest Alert Worldwide Ethernet Switches Revenue Rises in 3Q03. This Alert examines the state of the worldwide Ethernet switch industry. It also looks at developing trends and how the top-tier vendors are performing. This report can be purchased on Gartner's Web site.
These results are preliminary. Final statistics will be available soon in a detailed market statistics report categorized according to business size, technology segment and a separate section on Gigabit and 10 Gigabit Ethernet. This report can purchased on Gartner's Web site at www.gartner.com.
This analysis is provided by Gartner's worldwide Telecommunications and Networking group. This group provides an analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunications issues, please visit Gartner's Public Network Infrastructure Equipment Focus Area at http://www3.gartner.com/research/focus_areas/asset_48266.jsp. To purchase a report or subscribe to Gartner programs, call 408-468-8000 or go to www.gartner.com.
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