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Wireless switches take off in EMEA in 2Q04, says IDC
September 10, 2004
AMSTERDAM -- Second-quarter results from IDC's EMEA WLAN Tracker show that the EMEA WLAN market declined by 10% in the second quarter of 2004 but is up 188% year over year, reaching a total end-user revenue of $320 million. Price erosion and lower shipments of access points and add-on clients are the main cause for the revenue decline. Wireless switch revenue, however, started to take off and saw an increase of 363% compared to the first quarter of 2004.
Despite the lower quarter, expectations for the rest of 2004 remain positive. Service providers will continue to bundle Wi-Fi into their broadband offering, providing opportunities for growth to vendors targeting the consumer market. On the enterprise side, ratification of the 802.11i security standard and the uptake of wireless switches are positive signs for growth in this segment.
While Cisco's EMEA WLAN revenue decreased slightly, it is now the largest vendor in the EMEA WLAN market. D-Link and Netgear have similar market shares and hold the second and third positions. Siemens experienced another positive quarter through deals with service providers and is now ranked fourth in the EMEA market. While overall WLAN market shares of vendors selling wireless switches are still relatively low, vendors such as Symbol and Airespace experienced a very successful quarter due to the increased interest from the enterprise market.
"The EMEA WLAN market remains a highly consumer-oriented market where vendors with strong relationships with service providers are able to increase market share. Even though enterprise adoption continues to be low, the recent uptake in wireless switches shows that enterprises start to grow interest again in deploying wireless networks," said Evelien Wiggers, senior research analyst with IDC's European Telecommunications and Networking group.
IDC
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