To: Mang Cheng who wrote (21066 ) 8/31/1998 9:49:00 AM From: Moonray Respond to of 45548
Cahners In-Stat Group Announces that the LAN Switch Market Resumes Strong Growth in Q2 1998 - 08:10 a.m. Aug 31, 1998 Eastern SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 31, 1998--Cahners In-Stat Group announced in its Q2 1998 Networking Quarterly results that, combined, the LAN hub and switch market grew 6% sequentially to $3 billion in end-use sales. The report also announced that switch ports are on the rise as a percentage of overall LAN ports shipped, representing 37% of the total in Q2. 3Com maintained market leadership for the LAN hub and switch markets with 25% port share in Q2 98. Cisco leads in end-use sales with 37.4% share in Q2. Separately, the Shared Media Hub market declined sequentially in ports and sales in Q2, while the LAN Packet Switch market resumed strong growth after a slowdown to single digit growth in Q1. Switch port shipments increased 26% to 10.64 million and end-use sales increased 19% to $2.3 billion. For the first time, Fast Ethernet Switch ports represented the majority of end-use sales, reaching 48.7% of the total in Q2 98. Both Cisco and 3Com drove significant growth in this segment, increasing ports shipped by 55% and 83% respectively. "Fast Ethernet is expected to continue to displace 10 Mbps Ethernet switch ports as ASPs decline to levels that eliminate any compelling reason for customers not to future-proof their networks with 10/100 switch ports," said Shannon Pleasant, industry analyst for Cahners In-Stat Group's Networking Services. "Token Ring and FDDI represent an increasingly smaller percentage of the overall market as Ethernet overwhelmingly entrenches itself as the standard LAN networking technology." Cisco continued to widen the gap between itself and second ranked vendor, 3Com, in the LAN Packet Switch market. Cisco holds the number one ranking with 36.9% switch port share, followed by 3Com and Bay Networks with 21% and 10.8% switch port share respectively. "LAN Packet Switch and Hub Market Analysis," No. CQ9803M1/M6, is Pleasant's new report for Cahners In-Stat Group'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 priced at $2,995, which includes analyst inquiry privileges on topics covered in this report. To purchase this report, or for more information on Cahners In-Stat Group's services, contact Linda Morganstern at 408/345-4449 (FAX: 408/345-4400, email: lmorganstern@cahners.com). Press may also call Shannon Pleasant directly for discussions of the report. Headquartered in Newton, Mass., Cahners In-Stat Group is a high-technology market research firm with comprehensive understanding of computer and convergence, networking, wireless, telecommunications, Internet, enterprise software, and semiconductor market. Offices are also located in Scottsdale, Ariz. and San Jose, Calif. Cahners In-Stat Group, formed by the merger of In-Stat and Business Research Group, is part of Cahners Business Information, the largest publisher of specialized business publications in the United States, and a division of Reed Elsevier. Visit Cahners In-Stat Group online at cahnersinstat.com . Copyright 1998, Business Wire o~~~ O