Declining sales to high-end corporate and small office/home office (Soho) customers caused the router market in EMEA to fall by 7.6 per cent to $952.9m in the second quarter of this year, compared to $1bn in the first quarter.
Analyst IDC said that the Soho segment, which includes wireless routers, lost most of its steam in the second quarter of this year after strong revenue growth in the first.
The mainly residential router segment was found to have declined by 13.3 per cent from $312m in the first quarter to $270.5m in the second.
IDC's EMEA Router Tracker reported that the decline followed severe price competition, but added that several vendors in this sector were able to increase market share both in terms of shipments and revenues, notably Siemens, Linksys and Netopia.
Peter Hulleman, senior research analyst at IDC's European telecoms and networking group, said in a statement: "The EMEA router market is becoming increasingly competitive, with an increasing number of new vendors entering the market.
"This has had an especially negative impact on the price development in the lower end of the router market."
IDC also calculated that Cisco's revenue was down on its first-quarter 2004 performance, due to a strong revenue decline in its high-end router sales.
This is in contrast with the networking giant's performance in this segment in the first quarter, according to IDC, when its revenue grew strongly.
And while Juniper was found to have significantly increased its revenue in the high-end router segment in the second quarter, overall high-end router sales were down 16.4 per cent to $304m in the quarter.
Cisco, excluding Linksys, was identified as retaining its lead as the top router vendor in EMEA in the quarter.
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