11/20/98 Bus. Wire 08:13:00 Business Wire Copyright (c) 1998, Business Wire Friday, November 20, 1998 Dell'Oro Group Releases 3Q98 Report; Shared Hub and LAN Switch Market Grew 3 percent in 3Q98; Layer 2 Switched 100 Mbps Ethernet Price Declines Drive Growth PORTOLA VALLEY, Calif.--(BUSINESS WIRE)--Nov. 20, 1998--Total sales of Shared Hubs and LAN Switches grew 3 percent ($78 million), to $2.6 billion in 3Q98, according to the Dell'Oro Group's 3Q98 report, published earlier this week. Port shipments grew 11 percent (3 million ports), to 29.4 million. 3Q98 was the first quarter in 1998 in which port shipments grew faster than manufacturer revenues, due to a combination of lower prices and shifts in product mix. Market growth was fueled by Layer 2 100 Mbps Ethernet Switch sales which increased 31 percent during the quarter, despite an average price decline of 17 percent. Gigabit Ethernet Switch sales, which grew 67 percent, also contributed to the market's growth. Market Leaders -- Shared Hubs and LAN Switches Total Market 2Q98 3Q98 MFG Revenue ($M) $2,532.6 $2,610.5 Cisco $816.9 $884.6 3Com $394.9 $405.3 Nortel/Bay Networks $359.6 $353.0 Cabletron $244.8 $265.8 FORE Systems $102.7 $108.1 Xylan $81.1 $86.7 IBM $60.9 $54.8 Allied Telesyn $35.8 $41.8 Hewlett Packard $37.6 $40.9 Lucent $15.0 $36.2 The Dell'Oro Group's Shared Hub and LAN Switch report provides in-depth data and analysis of the Shared Hub and LAN Switch markets. The report contains tables of data on the performance of nearly 25 manufacturers. The Dell'Oro Group is a research and consulting firm specializing in business planning and strategic competitive analysis in the networking industry. CONTACT: Dell'Oro Group Tobb Dell'Oro, 650/529-2787 ext. 227 www.delloro.com 07:59 EST NOVEMBER 20, 1998 |