Worldwide campus switch sales were up 7% in the first quarter of 2022, according to new research from the Dell’Oro Group.
The growth was broad-based across North America, Europe, Middle East and Africa and China, with North America accounting for more than half of the sales increase during the quarter.
“Remarkably, and despite ongoing supply challenges, 1Q 2022 marked the fourth consecutive quarter of high single-to-double-digit growth in the market,” says Sameh Boujelbene, senior director at Dell’Oro Group. “In the meantime, port shipments were flat, suggesting that Average Sales Prices (ASPs) were up during the quarter. This ASP increase is mostly due to a more favourable regional, product, and customer mix. Our interviews revealed that vendors are sometimes selling higher-end products based on availability. Additionally, manufacturers get to choose which products they would like to place on the production line and they are prioritising the products with a higher margin, ” added Boujelbene.
Additional highlights from the 1Q 2022 Ethernet Switch – Campus Report:
• All of the growth in the 1Q 2022 sales was driven by the Enterprise segment, while sales to Small and Medium Businesses declined as it appears that vendors prioritised larger accounts.
• Although supply challenges are causing vendors to raise their list prices, these pricing actions won’t start to significantly impact market results until later in the year due to elongated lead times.
• The vast majority of the vendors were able to grow their revenues. However, Arista, H3C and Juniper grew the fastest and were able to gain more than half a point of share each.
• H3C once again displaced Huawei as the revenue leader in China.
• 2.5/5.0 Gbps ports were down during the quarter, mostly due to supply constraints.