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Report: Ethernet Switch Shipments Up, But Revenue Down

Analysts report that while overall shipments and demand for Ethernet switches grew strongly in 2003, manufacturer's revenue actually fell. According to a just released report from In-Stat/MDR, total port shipments rose 16.0% from 166.3 million ports shipped in 2002 to 193.0 million ports shipped in 2003. However, due to sharply declining ASPs over the year, overall manufacturer's revenue declined -- 11.8%, from $13.0 billion in 2002 to $11.4 billion in 2003.

In addition to a gradually improving global economy, In-Stat/MDR found that the following factors served to drive market growth in 2003:

  • A sharp increase in both the total number of endpoints connected to the LAN, as well as an overall increase in the diversity of connected endpoints.
  • An increasing diversity of traffic flows on the LAN, through network convergence, to include voice and video, as well as data.
  • Increasing integration with wireless networks.
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