BEIJING, May 10 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (stock code: HK08235), reported that 5.0831 million ports of Ethernet switches were sold in China in 2007Q1, generating sales revenues of 2.074 billion Yuan, up by 4.4% and 4.2% respectively. This figure was affected by Chinese New Year's, "Spring Festival," as many enterprises and utility units just started their information system building in the new year.
Fig. 1 Size and Year-on-Year Growth of the Ethernet Switch Market in 2007Q1
http://www.ccidconsulting.com/upload/11509.jpg
As for market segment structure, the high-end Ethernet switch sales volume reached 811,900 ports in 2007Q1, generating sales revenues of 1.371 billion Yuan, accounting for 15.8% and 66% of their respective total in the Ethernet switch market. The accumulated sales volume of low- and middle-end Ethernet switches reached a total of 4.2712 million ports, generating accumulated sales revenues of some 703 million Yuan, accounting for 84.2% and 34% of their respective total.
Table 1 Size of the Ethernet Switch Market in 2007Q1
-- by Low-, Middle- and High-End Products
Sales Sales
Volume Percentage Revenues Percentage
(10,000 of Total (100 million of Total
ports) Yuan)
High-End 80.19 15.8% 13.71 66%
Low- and
Middle-End 428.12 84.2% 7.03 34%
Total 508.31 100.0% 20.74 100.0%
Source: CCID Consulting, April 2007
As for industry structure, telecom operators' demand for metro-Ethernet building pushes forward market growth in the telecom industry. Meanwhile, the government, education, energy and financial services sectors are the main sectors for switch product sales. In the vertical market, as their IT applications gather pace, small- and medium-sized businesses will further expand their market shares.
Regionally, North China, East China and South China accounted for over 40% of the market. Thanks to telecom network upgrading and enterprise information system building in Southwest China, there is now a huge potential for accelerated market growth there.
As for vendors, ZTE won all the switch orders in the ADSL capacity expansion project of the Bolivian operator COTAS in March 2007. With this, ZTE once again successfully entered the market of leading operators in South America. This highlights the strength of ZTE's data communication products. After withdrawing from Huawei-3Com, Huawei, another important communication equipment vendor in China has mainly offered telecom-level products that support operators' metro-Ethernet building. In this field, it continued to maintain the leading advantage. After the former Huawei-3Com was renamed H3C, the existing product line structure has been kept. In the data communication field, switches are still its most advantageous products. The company mainly targets the enterprise-level market. Currently, the industry-specific market is the key target market for which ZTE is developing its data communication products. In this field, H3C will therefore face strong competition from ZTE.
Whatever changes occur in the competition pattern will not effect the trend of continuous market expansion. Meanwhile, multi-service carrying and intelligent switch products will become the trend.
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas of powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com .
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd
Tel: +86-10-88559080
Email: liuyan@ccidconsulting.com
