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To: Lost in New York who wrote (15777)	6/1/1998 5:07:00 PM
From: Moonray	Respond to of 22053

In-Stat Analysis Shows that the LAN Hub and Switch Market Grew 9 Percent Over Last Quarter: Market Dominated by Top Three Vendors BW - 04:34 p.m Jun 01, 1998 Eastern SCOTTSDALE, Ariz.--(BUSINESS WIRE)--June 1, 1998--In-Stat's Q1 1998 Networking Quarterly results for Lan hub and switch markets, released to its customers on May 27, 1998, show that the LAN hub and switch market grew 9% to $2.9 billion in end-use sales in Q1 1998 from Q4 1997. Comparatively, the market grew 27% over the same period last year. Only three vendors claimed double-digit port and sales market share in the LAN hub and switch market in Q1: 3Com, Bay Networks and Cisco. Cisco grew overall shipments 35%, which allowed it to move into the top three with 11.8% share."3Com, Bay Networks and Cisco hold almost 75% of the market and continue to put pressure on third tier vendors to maintain even single digit share," explained Shannon Pleasant, Industry Analyst for In-Stat's Networking Services. "Economies of scale, powerful channel positions, and brand loyalty are competitive advantages that broaden the gap each quarter between double digit market share holders and the remaining vendors." Switches continued to outpace hubs in sales growth, reaching $2.04 billion in the first quarter of 1998 compared to $1.83 billion in Q4 of 1997. However, growth in switch port shipments slowed to 10%, which was an all-time low. The Shared-Media Hub market grew 3% sequentially to 18.82 million ports and $881 million in end-use sales. "ASPs stabilized overall, but continue to fluctuate slightly as the range of hub products that are introduced broadens," explained Pleasant. Shared Fast Ethernet port shipments doubled as a percentage of overall ports shipped, while shared Ethernet shipments declined from 85% in Q4 1997 to 75% in Q1 1998. Shared Fast Ethernet made considerably headway as a percentage of sales, and in Q1 represented 36% of sales compared to 18% in Q4 1997. Token Ring and FDDI continue to represent a declining percentage of overall sales and shipments with combined totals of 15% in end-use sales and less than 6% in ports shipped in the first quarter of 1998. "LAN Packet Switches and Hub Market Analysis," # CQ9802M1, is Pleasant's new report for In-Stat's Networking Quarterlies Service. It includes detailed market shares, key vendors and a rolling three-quarter forecast of the LAN hub and switch market. The report is specially priced at $2995, which includes analyst inquiry privileges on topics covered in this report. To purchase this report, or for information about In-Stat's Networking and other services, call Dennis Ashton at 602/483-4471 or email dennisa@instat.com. Press may also call Shannon Pleasant directly for discussions of the report. In-Stat is a full service, high-technology, market research and information company serving the semiconductor, communications, computer, and multimedia marketplaces. In-Stat's sister company, BRG is a demand-side technology market research and consulting organization providing strategic planning information and consulting services. In-Stat and BRG are part of Cahners-In-Stat Group, which is a division of Cahners Business Information, the largest publisher of specialized business publications in the United States. Visit In-Stat Online at instat.com and BRG at www.brgresearch.com. o~~~ O