Infonetics: No Seasonal Rebound in Enterprise Router Sales in Q2, Market Down 9% from a Year Ago

"Demand for routers is still strong, as indicated by rising unit shipments, but discount pressure, preferences for local and lower-cost vendors in China, and lower public sector sales drove down revenue in the second quarter," notes Infonetics analyst Matthias Machowinski. (Graphic: Infonetics Research)

BOSTON--()--Market research firm Infonetics Research released excerpts from its 2nd quarter 2014 (2Q14) Enterprise Routers report, which tracks high-end, mid-range, branch office, and low-end/SOHO router revenue and ports.

ANALYST NOTE

“For the second quarter in a row, enterprise router sales disappointed, and revenue is now trending downward. Demand for routers is still strong, as indicated by rising unit shipments, but discount pressure, preferences for local and lower-cost vendors in China, and lower public sector sales drove down revenue,” notes Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

ENTERPRISE ROUTER MARKET HIGHLIGHTS

  • Worldwide enterprise router revenue totaled $867 million in 2Q14, just a 1% sequential gain in a quarter that typically sees a strong seasonal pickup; Unit shipments are still growing, up 6% year-over-year
  • Meanwhile, enterprise router sales dipped 9% in 2Q14 from the year-ago quarter (2Q13)
  • The good news in 2Q14: demand for higher-performance routers was strong; High-end and mid-range router unit shipments were up by double digits year-over-year, while branch office and low-end routers posted more muted growth
  • Asia Pacific is once again the top-performing region for enterprise routers in 2Q14; North American sales tumbled 19% year-over-year, and EMEA sales fell 11%
  • U.S. vendor performance for enterprise routers was mostly down on a year-over-year basis in 2Q14, while Chinese vendors gained as preferences in China shift to local vendors Huawei and ZTE as well as the H3C division of HP

ROUTER REPORT SYNOPSIS

Infonetics’ quarterly enterprise router report provides worldwide and regional market size, vendor market share, forecasts through 2018, analysis, and trends for high-end, mid-range, branch office, and low-end/SOHO router revenue and ports. Vendors tracked: Adtran, Alcatel-Lucent, Brocade, Cisco, HP, Huawei, Juniper, NEC, OneAccess, Yamaha, ZTE, others. To buy report, contact Infonetics: www.infonetics.com/contact.asp.

RELATED REPORT EXCERPTS

RECENT AND UPCOMING ENTERPRISE RESEARCH

Download Infonetics’ 2014 market research brochure, publication calendar, events brochure, report highlights, tables of contents, and more at www.infonetics.com/login.

FOR MORE INFORMATION

Contact Infonetics at +1 408-583-0011 or http://www.infonetics.com/contact.asp.

ABOUT INFONETICS

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics’ About Us slides here.

Contacts

PRESS CONTACT:
Infonetics Research
Matthias Machowinski, +1 408-583-3363
Directing Analyst, Enterprise Networks and Video
matthias@infonetics.com
Twitter: @machowinski

Release Summary

Market stats, vendors standings and analyst commentary on the 2Q14 enterprise router equipment market from Infonetics Research.

Contacts

PRESS CONTACT:
Infonetics Research
Matthias Machowinski, +1 408-583-3363
Directing Analyst, Enterprise Networks and Video
matthias@infonetics.com
Twitter: @machowinski