Shared Hub, LAN Switch Markets Up 3%

Total sales of Shared Hubs and LAN Switches grew 3% ($78 million), to $2.6 billion in 3Q98, according to a recent Dell'Oro Group report.

Port shipments grew 11% (3 million ports), to 29.4 million. Third quarter 1998 was the first quarter in 1998 in which port shipments grew faster than manufacturer revenues, due to a combination of lower prices and shifts in product mix.

Market growth was fueled by Layer 2 100 Mbps Fast Ethernet switch sales which increased 31% during the quarter, despite an average price decline of 17%. Gigabit Ethernet Switch sales, which grew 67%, also contributed to the market's growth.