Enterprise router revenue dips 9% to $867 mn in Q2 2014: Infonetics

Worldwide enterprise router revenue decreased 9 percent to $867 million in Q2 2014, while unit shipments increased 6 percent, said Infonetics Research.

The research report said 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 percent year-over-year, and EMEA sales fell 11 percent.

enterprise router market

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 H3Cdivision of HP, said Infonetics Research.

“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,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

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