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

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:

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? BradReese.Com Cisco Refurbished Contact: Brad Reese Twitter: Call Toll Free 866-864-0506 or International 850-364-4115

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