In-Stat Analysis Shows Remote Access Server Market Declined
4% While Routers Grew 4% in Sales for the Fourth Quarter of 1997
08:18 a.m. Mar 09, 1998 Eastern
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--March 9, 1998--In-Stat released its
Q4 1997 Networking Quarterly results for Routers and Remote Access Servers
(RAS) to its customers on February 20, 1998.
RAS sales declined for the second consecutive quarter, but 1997 resulted in 20%
sales growth to $2.4 billion.
Port shipments increased by 9% over the third quarter of 1997 reaching 1.65 million
ports to end the year with 6.2 million ports shipped in 1997, a 36% increase over
1996.
The RAS market has not experienced strong growth in sales since the second
quarter of 1996. "While demand for these networking products remains extremely
healthy, the culprit behind the less than ideal conditions is ASP erosion brought
about by the highly competitive nature of this particular market segment," explained
Jeremy Duke, Director of In-Stat's Communications Market Services Group.
"Clearly, with ASPs dropping significantly, only the largest players will be able to
win in this market."
In-Stat believes increasing demand for Access Concentrators will continue to be a
trend through the next quarter. "Access Concentrators represented 82% of the total
RAS sales opportunity at the end of the fourth quarter, a dramatic increase from a
comparative level of 77% in the fourth quarter of 1996," Duke added.
The router market has been experiencing flat revenues, teetering at about $1.5
billion each quarter, with Q4 reaching $1.524 billion. Unit shipments increased 11%
to 390 thousand units. For 1997, the router market grew 23% in unit shipments and
5% in sales to $5.998 billion. The biggest driver of unit shipment growth continues
to be the low-end segment, while high-end routers maintain a significant portion of
router sales. Across all router segments, Cisco maintains the number one position
with a 56% share of worldwide routers shipped, and a 75% share of worldwide
router revenue in Q4 1997. In a distant second and third place are Bay Networks
and 3Com with combined market shares of 15%.
"Q4 1997 RAS Market Analysis" No.CQ9801M3, and "Q4 1997 Router Market
Analysis" No.CQ9801M2 are Duke's new reports for In-Stat's Networking
Quarterlies Service. They include detailed market shares and a rolling three-quarter
forecast of the Router and Remote Access Server markets.
Each of these reports is priced at $2,495, which includes analyst inquiry privileges
on the topics covered. To purchase these reports or for information about the
Networking Quarterly program or In-Stat's Communications, Semiconductor, and
Computer Services, contact Dennis Ashton at (602) 483-4471, email
dennisa@instat.com.
In-Stat is a full service, high-technology, market research and information company
serving the semiconductor, communications, computer, and multimedia
marketplaces. In-Stat is part of Cahners Business Information, the largest publisher
of specialized business publications in the United States. Visit In-Stat Online at
instat.com. (See also: instat.com) (See also:
businesswire.com)
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