IDC reports strong demand for Routers in EMEA in 4Q05

AMSTERDAM – March 6, 2006 – IDC's EMEA Router Tracker shows that in the fourth quarter of 2005 the EMEA router market grew strongly by 12.3% to $1.3 billion compared to $1.2 million in 3Q05.

The small SOHO segment, the largest segment measured in revenue in 4Q05 and which includes wireless routers, increased a whopping 53.2% from $360.5 million in 3Q05 to $552.3 million in 4Q05, thanks to strong demand for wireless and ADSL2+ routers. Sales of high-end routers, the second-largest segment measured in revenue in 4Q05, were down 1.8% to $436.0 million.

During the period, Cisco's revenue (excluding Linksys) declined by 9.5% from $589.7 million in 3Q05 to $533.8 million in 4Q05, and its total router market share declined from 50.5% in 3Q05 to 40.7% in 4Q05. Cisco's decline in market share can to a large extent be attributed to the fact that it does not sell products under the Cisco brand in the small SOHO segment.

Linksys, Cisco's SOHO division, performed extremely well in the fourth quarter, therefore Cisco's and Linksys' combined market share declined much less, from 52.8% in 3Q05 to 44.8% in 4Q05.

Juniper, Cisco's archrival in the high-end router segment, continued to grow in revenue in the period 3Q05-4Q05. Juniper's revenue grew by 7.3% from $117.2 million in the third quarter to $125.7 million in the fourth quarter, and its overall EMEA router market share declined slightly from 10.0% in 3Q to 9.6% in 4Q05. Thomson became market leader in the EMEA small SOHO segment in 4Q05, thanks to strong growth in its wireless router shipments and revenue.

"The EMEA router market continued to show strong growth in 4Q05, fuelled by exceptionally strong demand from consumers for wireless and ADSL2+ routers," said Peter Hulleman, research manager with IDC's European Telecommunications and Networking group.

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