Big gains for Cisco in N. America; ALU and Huawei turn the tables in APAC

RENO, NV, November 26, 2012

New data from Synergy Research Group shows that while worldwide revenues for service provider routers & carrier Ethernet remain relatively static at around $3.1 billion per quarter, the fortunes of the leading vendors vary greatly region by region. In North America Cisco has strengthened its grip on the market at the expense of Alcatel-Lucent and Juniper. Cisco has grown its regional revenues by 15% on a rolling annualized basis while the total North American market has been essentially flat; in Q3 it had a 60% share of the regional market. Meanwhile, in the Asia-Pac region, Cisco’s revenues have dropped off a bit in line with total APAC market size, while Alcatel-Lucent and Huawei have both experienced strong revenue growth, mainly at the expense of Juniper. In Q3 Cisco’s share of the Asia-Pac market was down to 39%, while second-ranked Huawei was up to 27% and Alcatel-Lucent reached an all-time high of 10%.

On a worldwide basis, Cisco had a 49% share of the SP router and carrier Ethernet market in the third quarter, followed by Alcatel-Lucent (16%), Juniper (15%) and Huawei (11%).

“Cisco was the biggest winner in North America thanks largely to big spending by the operators for their 3G & LTE networks, while in the APAC region Huawei and ALU showed particular strength in China and Japan respectively” says Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “Juniper had the toughest time in the quarter in both North America and APAC, but it did buck the overall market trend by posting strong growth in EMEA.”