EMEA LAN switch market down by 2.9% in Q1 2006
In Q1 2006 the LAN switch market in EMEA continued to grow in terms of revenue, but declined measured in port shipments, IDC reported. Port shipments declined by 2.9% from 20.5 mln ports in Q4 2005 to 19.9 mln ports in Q1 2006 and revenue increased by a healthy 2.6% to $1.30 bln in Q1 2006, compared to $1.27 bln in Q4 2005. The average sales price (ASP) of LAN switches in EMEA increased strongly by 5.6% to $65.3 per port during the Q compared to a decline of 8.9% in the period Q3 2005 ? Q4 2005. The growth of the ASP of LAN switches is largely the result of the good numbers from Cisco. This is due to the fact that Cisco sells a lot of high-end LAN switches that have a relatively high ASP, combined with the company’s strong market leadership position. Another reason why the ASP increased was strong growth in the gigabit nonmodular segment of the market. In Q1 2006 fast Ethernet port shipments declined 5.6% to 14.9 mln ports and revenues decreased 2.3% to $397.1 mln. Gigabit Ethernet port shipments increased by 6.2% to 5.0 mln ports, and revenues grew by 5.4% to $845.4 mln in EMEA in Q1 2006.