Feeds

Networking equipment spend gets slumpier

Europe is 'brutal'

  • alert
  • submit to reddit

Top three mobile application threats

Weak economic conditions are pilling on fresh misery for networking equipment companies and their channel partners in the US, and more particularly, in Europe.

A survey published by channel analysts Global Touch tells a story of a sector struggling to keep its head above water and pessimistic about early recovery.

"The networking equipment market continues to face lacklustre demand. Q4 2002 while seasonally better than the prior quarter, continues a nine-quarter streak of tough demand conditions and lagging sales," said Denise Sangster, president and chief executive of Global Touch.

Two in three (66 per cent) of US respondents to the study indicated that networking equipment sales were in-line-to-ahead of reduced sales expectations for Q4 2002.

European resellers faired much worse due to 'brutal' market conditions. Two in three (64 percent) of European respondents said sales for the quarter were below-to-extremely below sales expectations.

Vendor snap shot

Only sales of 3Com and Enterasys Networks equipment in the US showed moderate growth last quarter, with those gains set against a sales decline in Europe. Sales of Cisco System and Juniper Networks kit were flat-to-down in both the US and Europe. Extreme Networks sales were flat-to-down in the US, and sharply down in Europe.

From a 'marginal' fourth quarter, resellers quizzed by Global Touch generally look forward to next year, at the earliest, for significant growth.

US resellers predict networking equipment sales will be flat or slightly down for the next three months, but generally expect that sales for 2003 as a whole will be better than last year.

However networking equipment sales will not "accelerate" until 2004 or later, according to three in four of US respondents to the study. Meanwhile most European resellers expected the market to expand again in the second half of this year or later.

Sangster commented: "The question that no one wants to discuss is, what will happen if volumes continue to fall or remain flat through at least the first half or all of 2003?"

The data for the Networking Equipment edition of Global Touch's Channel Tracker report was collected from participants during the first two weeks in December 2002, and focuses on sales in the fourth calendar quarter (October 1 to December 31, 2002).

A summary of the report can be found here, and the full report can be purchased here for $399. A four-quarter subscription to the report costs $1,436.00. ®

Related stories

Channel mired in networking depression
Networking vendors eat their babies
Channel faces cash crisis

3 Big data security analytics techniques

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.