Campus ethernet switch revenues crash to a two-year low in 1Q 2024

According to a recent report by Dell’Oro Group, the trusted source for information about the telecommunications, security, networks, and data center industries, 1Q 2024 worldwide Campus Switch revenues dropped by 23 percent year-over-year (Y/Y). The only two vendors that grew Campus Switch revenues Y/Y in 1Q 2024 were Arista and Ubiquiti.

“Vendor backlogs of campus switch orders have now been completely run down, and the market is in a multi-quarter digestion cycle,” said Siân Morgan, Research Director at Dell’Oro Group. “The shipments of most port speeds declined, and the Average Sales Price (ASP) also dropped on a Y/Y basis.

“However, in 1Q 2024, Arista had its third sequential quarter of share gain, growing Campus Switch sales to large enterprises. Meanwhile, Cisco’s Campus Switch shipments contracted sharply. This reduction contrasts with their shipments in 2023, when Cisco opened the “floodgate” for Catalyst and Meraki port shipments which had been on backorder,” added Morgan.

Additional highlights from the 1Q 2024 Ethernet Switch – Campus Report:

• The contraction in campus switch sales was broad-based across all regions, with the exception of CALA.
• Some vendors bucked the price trend and were able to grow port ASPs thanks to richer product mixes.
• 2.5/5.0 Gbps switch ports are expected to return to growth as shipments of Wi-Fi 7 Access Points accelerate.

BCS Bureau