November 30, 2004

L2-L3 Ethernet Switch Revenue Up 6%

SAN JOSE, Calif., Nov. 30 /PRNewswire/ -- Worldwide layer 2 through layer 3 Ethernet switch port shipments increased 15% and revenue increased 6% to $3.8 billion between 2Q04 and 3Q04, according to Infonetics Research's quarterly market share and forecast service, L2-L3 Ethernet Switches.

"The strongest growth this quarter came from 10G chassis switches, similar to last quarter," said Matthias Machowinski, directing analyst with Infonetics Research and author of the report. "Cisco and other vendors have been targeting this segment with significant price reductions to persuade end-users to migrate to Gigabit speeds. Our demand-side research confirms solid demand for Gigabit Ethernet ports over the next couple of years, but there are few environments today that require Gigabit speeds to the desktop, which will be a limiting factor in wide-scale adoption of 10G in the network core."

3Q04 Market Highlights

-- Cisco maintains its lead in the L2-L3 Ethernet switch market with

66% revenue and 34% port market share

-- Hewlett-Packard is in distant second for revenue market share, followed

by Nortel

-- NETGEAR is second in worldwide L2-L3 Ethernet switch port market share,

with 15%

-- Growth in 1G fixed and chassis ports was strong, driven by rapidly

declining ASPs

-- Fixed switches now represent just under half of all switch revenue, and

chassis switches represent just over half; in 2003, the split was

40-60, but by 2007 will be 50-50

-- 49% of all L2-L3 Ethernet switch revenue was from North America, 32%

from EMEA, 17% from Asia Pacific, and 2% from CALA; all regions gave up

percentage points to North America this quarter

L2-L3 Ethernet Switches tracks layer 2 and layer 3 Ethernet switches, broken out by fixed configuration switches and chassis switches. Both sub-categories are broken out by 10G, 1G, and 100M switches. Forecasts are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific, and CALA). Companies tracked in this service include 3Com, Alcatel, Allied Telesyn, Avaya, Cisco, D-Link, Enterasys, Extreme, Foundry, Hewlett-Packard, NETGEAR, Nortel, SMC, and others.

For the table of contents, log on to Infonetics Research's Information Portal at For sales, contact Larry Howard, vice president, at [email protected], 916-933-3543.

Infonetics Research ( is an international market research and consulting firm covering the data networking and telecommunications industries in North America, Europe, and Asia. Infonetics helps companies develop, market, and sell products and services by providing objective analysis of end-users, service providers, and product manufacturers. Infonetics has offices in Silicon Valley, the Boston Metro Area, and London.

Infonetics Research

CONTACT: media, Matthias Machowinski, Directing Analyst, EnterpriseVoice & Data, of Infonetics Research, +1-781-933-9868, [email protected]

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