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Cisco expands its SMB router market share but loses ground in high-end segment

By Brad Reese on Mon, 03/09/09 - 3:52pm.
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Enterprise Router Revenue Forecast (Worldwide)According to an enterprise router report by Infonetics research analyst - Matthias Machowinski, Cisco's SMB initiative is paying off in the low-end of the router market - Cisco expanded its unit market share by 5 points last quarter (CY4Q08), to 68%.

However, Matt said overall the market did not do as well, "The enterprise router market fell in 2008, though the story varied from region to region: emerging economies actually did well, with sales up dramatically in Central and Latin America and decently in Asia Pacific, while North America and EMEA were down."

Other report highlights:

Quarterly worldwide sales of enterprise routers dropped below $1 billion for the first time in at least 9 quarters in 4Q08.
Mid-range and branch office routers held up better than the rest of the market.
Cisco is holding steady in the core market segments of mid-range and branch office routers, which account for 87% of the market.
3Com/H3C and Huawei had sequential growth in enterprise router revenue in 4Q08; heavyweight Cisco was down 11% and Juniper dipped 1%.
Cisco lost ground in the high-end segment last quarter, with shipments down 38% over 3Q08, vs. Juniper up 23%.

All of which pretty much forecast the 23% drop Year Over Year in Cisco router revenue for 2Q09:

Cisco Q2FY09 Revenue Highlights

Related story:

WAN optimization market winners? 1 Cisco 2 Blue Coat 3 Riverbed


Why do you think Cisco is growing market share in SMB routers but losing ground in the high-end segment?

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I love Cisco products but the way the lied and manipulated the market in the 90's still disgusts me.I wonder if we are ready to rate companies on their technical abilities and product quality instead of the hot air their marketing and accounting people generate ?

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