Cisco regained lost market share in the EMEA LAN Switch Market in 1Q06, says IDC

AMSTERDAM, NETHERLANDS – JUNE 7, 2006 – IDC's EMEA LAN Switch Tracker shows that in the first quarter of 2006 the LAN switch market in EMEA continued to grow in terms of revenue, but declined measured in port shipments. Port shipments declined by 2.9% from 20.5 million ports in the fourth quarter of 2005 to 19.9 million ports in 1Q06 and revenue increased by a healthy 2.6% to $1.30 billion in 1Q06, compared to $1.27 billion in 4Q05.

"In 1Q06, Cisco proved again to be a very strong market leader in the EMEA LAN switch market by winning back all the market share it lost in the previous quarters," said Peter Hulleman, research manager with IDC's European Telecommunications and Networking group.

Cisco (excluding Linksys) continued to lead the market, and its port shipment market share increased from 31.0% in 4Q05 to 35.3% in 1Q06.

Cisco's revenue market share grew from 65.8% in 4Q05 to 69.9% in 1Q06, Cisco's highest revenue market share in the last five quarters.

The average sales price (ASP) of LAN switches in EMEA increased strongly by 5.6% to $65.3 per port during the quarter compared to a decline of 8.9% in the period 3Q05-4Q05. The growth of the ASP of LAN switches is largely the result of the good numbers from Cisco. This is due to the fact that Cisco sells a lot of high-end LAN switches that have a relatively high ASP, combined with the company's strong market leadership position. Another reason why the ASP increased was strong growth in the gigabit nonmodular segment of the market.

In 1Q06 fast Ethernet port shipments declined 5.6% to 14.9 million ports and revenues decreased 2.3% to $397.1 million. Gigabit Ethernet port shipments increased by 6.2% to 5.0 million ports, and revenues grew by 5.4% to $845.4 million in EMEA in 1Q06.

During the first quarter of 2006, a number of vendors were able to grow both their port shipments and revenues with double digits, namely Linksys, Force10, and F5.

For further information please contact Peter Hulleman,

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