Dell’Oro: Campus switch sales rise despite supply chain issues

Worldwide sales of campus switch sales rose 7% in 1Q 2022, with growth across North America, Europe, Middle East and Africa, and China, according to a new report from Dell’Oro Group. North America accounted 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,” said 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 favorable 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 prioritizing 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 prioritized the 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.

https://www.delloro.com/news/higher-asps-drove-7-percent-growth-in-1q-2022-campus-switch-revenue/