Cahners In-Stat Group Declares Strong NIC Market Growth in 2Q; Fast Ethernet Eclipses 50% of Total Market in Both Units and Revenues

Cahners In-Stat Group Declares Strong NIC Market Growth in 2Q; Fast Ethernet Eclipses 50% of Total Market in Both Units and Revenues

SCOTTSDALE, Ariz.–(BUSINESS WIRE)–Aug. 31, 1998–Cahners In-Stat Group announced in its 2Q 1998 Networking Quarterly results that the strong sequential unit and sales growth experienced by the worldwide Networking Interface Cards (NIC) market was driven largely by the continuing migration to Fast Ethernet NICs.

The continuing shift in product mix from Ethernet to Fast Ethernet and higher unit volumes resulted in 8.1% growth in sales for 2Q 1998. Unit shipments jumped 7% to 11.7 million for the same period.

“For the first time Fast Ethernet NICs made up 50% or more of both units shipped and revenue for the overall NIC market,” said Mike Wolf, industry analyst for Cahners In-Stat Group’s Networking Services. “The success of the Fast Ethernet segment came largely at the expense of Ethernet NICs, which saw their percentage of the overall market slide to 34% in unit terms and 17% of revenues.”

3Com and Intel combined, controlled a commanding 74% of the Fast Ethernet market. While both 3Com and Intel were able to increase shipments in 2Q, Intel increased its market share of the Fast Ethernet nearly 2% to 23.5% by exceeding the industry growth rate. 3Com remains the market leader with 50.4% of the Fast Ethernet market, as well as the overall NIC market with 42.5% of units shipped.

Cahners In-Stat Group expects the worldwide NIC market to continue the moderate growth it experienced in 2Q 1998. “Along with the much smaller ATM market, the Fast Ethernet NIC market is the only segment to show steady growth and Cahners In-Stat Group expects this to continue in the near future,” added Wolf.

Network Interface Card Service, No. CQ9803M5, includes detailed market shares, key vendors and a rolling three-quarter forecast of the NIC market. The report is priced at $2,495, which includes analyst inquiry privileges on topics covered in this report.

To purchase this report, or for more information on Cahners In-Stat Group’s services, contact Linda Morganstern at 408/345-4449 (FAX: 408/345-4400, email: lmorganstern@cahners.com). Press may also call Mike Wolf directly for discussions of the report.

Headquartered in Newton, Mass., Cahners In-Stat Group is a high-technology market research firm with comprehensive understanding of computer and convergence, networking, wireless, telecommunications, Internet, enterprise software, and semiconductor market.

Offices are also located in Scottsdale, Ariz. and San Jose, Calif. Cahners In-Stat Group, formed by the merger of In-Stat and Business Research Group, is part of Cahners Business Information, the largest publisher of specialized business publications in the United States, and a division of Reed Elsevier. Visit Cahners In-Stat Group online at http://www.cahnersinstat.com.

CONTACT: Cahners In-Stat Group

Mike Wolf, 602/483-4458

email: mikew@instat.com

Karen Martin, 602/483-4442

email: karenm@instat.com

www.instat.com

Chris Hecht, 602/483-4443

email: chrish@instat.com

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