The LAN switch market is shrinking, but demand for products is higher than ever.
Falling prices are the cause for this paradox, according to a recent report from In-Stat/MDR that shows Ethernet switch sales dipped from $US14.9 billion in 2001 to $US12.4 billion in 2002.
However, port shipments jumped 12 per cent over the same time, going from 137 million ports shipped in 2001 to 155 million in 2002.
The report highlighted Layer 3 switches as the fastest-growing segment, jumping 13.8 per cent in port shipments.
Overall prices for LAN ports fell from $US109 per port in 2001 to $US86 in 2002.