Network market stalls in Q1

Network market stalls in Q1

The decline of application service providers (ASPs) in the later half of 2000 has upset global network component sales in the first quarter of 2001, according to Cahners In-Stat Group's Networking Quarterly report.

Digital, ADSL and cable modem manufacturers received a swift kick from market demand as broadband disillusionment saw hardware vendors revert to bundling analog modems in systems the analyst's report said.

In addition to struggling ASPs, the terabit router market was hit by decreased demand in traditional segments. Units shipped shrank 20 per cent to $US2.8 billion while still managing a 9 per cent increase over the same period last year.

The voice-over-IP (Internet Protocol) market registered positive results despite new technologies reshuffling the sector. Increased prices for ports reaped a 62 per cent revenue boost for vendors.

In-Stat predicts the majority of the current trends will continue into Q3 before the market again gathers momentum.

For more statistics from this report, see next week's issue of ARN.

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