Price hikes boost Ethernet switch revenue in Q3

Manufacturer increases allow revenue to grow at four times the rate of units sold, Context figures reveal

The price is right: HP bucked the trend with a 29 reduction in Q3, but the vendor's revenue declined 26 per cent

Summer price rises from major vendors helped the European Ethernet switch market post double-digit growth during 2010's third quarter.

Figures from analyst Context reveal Q3 sales through the continent's largest distributors were worth 16 per cent more than during the corresponding period last year. This is despite a rise in unit sales of just four per cent. Context attributes this disparity to a series of vendor price hikes in July and August.

Netgear was Europe's top vendor during Q3, holding a 30 per cent share of the market – a sequential rise of five points. The quarter's biggest selling product was D-Link's Des-1000 range. The switch's popularity allowed the manufacturer to take second spot in the market share stakes, grabbing a 22 per cent slice.

HP improved its standing in the vendor league table, but at the expense of a 26 per cent revenue decline, explained Context's vice president of enterprise research Alex Mesguich.

“HP bucked the trend with price cuts of up to 29 per cent on some of the vendor's leading products such as the ProCurve 1810G-24”, he said. “The move saw HP boost unit sales at the end of Q3 to finish the quarter with a share of 19 per cent in terms of total Ethernet switches sold via distribution."