IDC: EMEA Router Q3 Market Declined

Router market declined 2.5% in EMEA in 3Q04, says IDC

January 6, 2005

1 Min Read

AMSTERDAM -- Third-quarter results from IDC's EMEA Router Tracker show that the overall router market in EMEA declined by 2.5% to $931.9 million in 3Q04, compared to $956 million in 2Q04. The decline was fueled by revenue declines in the midrange and SOHO segments.

Revenues in the high-end segment, which is the largest router segment, were up strongly by 10.5% to $335.7 million in 3Q04. In 3Q04, Juniper was again able to take market share away from Cisco in this segment. The second largest segment, small SOHO, which includes wireless routers, continued to be negatively impacted by severe price competition. The mainly residential router segment declined slightly, at 3%, from $273.6 million in 2Q04 to $265.4 million in 3Q04.

Cisco's revenue continued to be under pressure in 3Q04, declining by 3.4% in the period 2Q04-3Q04. The decline in 3Q04 was less than in the previous period, 1Q04-2Q04, when Cisco's revenue declined by 9%. The decline was primarily fueled by a strong decline in Cisco's midrange and SOHO router sales. As a result Cisco's total router market share declined slightly from 59.5% in 2Q04 to 58.5% in 3Q04.

Overall, Cisco (excluding Linksys) remained the leading router vendor in EMEA in 3Q04. Other major vendors in the EMEA router market in 3Q04 were Juniper, Zyxel, Siemens, and Netgear.

"Cisco's market leadership position in the EMEA router market is increasingly under attack, although the gap in market share between Cisco and Juniper, the second vendor in the overall market, remains very large," said Peter Hulleman, senior research analyst with IDC's European Telecommunications and Networking group.


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