Driven on by price cutting, European demand for Gigabit Ethernet products continued to increase during the second quarter of this year, although the growth rate is slowing down compared with the first quarter.
According to analyst IDC's latest EMEA LAN Switch Tracker, Gigabit Ethernet port shipments increased 4.6 per cent while revenue declined 1.5 per cent amid strong price competition in the second quarter compared to the first.
The overall local area network (Lan) switch market in Europe, the Middle East and Africa was found to have declined by 0.6 per cent, to 16.4 million ports in the second quarter, compared with 16.5 million in first quarter. Revenues decreased 3.3 per cent to $1.2bn in the second quarter.
This is in sharp contrast with the first quarter, when Lan switch port shipments increased 15 per cent and revenues 21.7 per cent.
The market research indicated that Gigabit Ethernet Lan switches accounted for 14.4 per cent of all Lan switch ports shipped and 53.5 per cent of all Lan switch revenues in EMEA in the quarter, compared with 13.7 per cent and 52.5 per cent in the last three-month period.
IDC found that most major networking vendors were able to grow their Gigabit Ethernet revenues, with many seeing double-digit growth.
The largest vendor measured by revenue in the second quarter was Cisco, followed by HP, 3Com, Nortel, and Extreme.
"Gigabit Ethernet will continue to drive growth in the EMEA Lan switch market in the coming quarters, as enterprises increasingly are using Gigabit Ethernet Lan switches for desktop connectivity and to interconnect servers in datacenters," said Peter Hulleman, senior research analyst with IDC's European telecoms and networking group, in a statement.
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