Enterprise router revenue of Adtran, Cisco, Juniper, and Yamaha declined year-over-year in Q1 2014, said Infonetics Research. OneAccess, Huawei, and ZTE gained substantially.
Infonetics Research said the worldwide enterprise router revenue decreased 14 percent to $859 million in Q1 2014 from Q4 2013.
The research report said Q1 2014 saw a revival in low-end routing, but Infonetics expects this to be short-lived.
The research report noted that Cisco lost considerable market share in China to Huawei and ZTE. ZTE increased its enterprise routers market share significantly as compared with Huawei in the Chinese IT market. HP has also faced challenging market conditions in China.
Sales of enterprise routers in North America stumbled in Q1 2014, down 4 percent year-over-year, but Infonetics believes the decline is temporary and growth will resume in the coming quarters.
“Among the key factors affecting revenue growth in the first quarter are a mix shift toward lower-end equipment, increasing discount pressure, weakness in North America, and preferences in China shifting to local vendors,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.