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How Did Cisco’s Wireless Segment Do in Fiscal 4Q16?

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Revenues rose 5% YoY

Cisco System’s (CSCO) wireless business saw revenues rise 5% YoY (year-over-year) in fiscal 4Q16. Revenues in this segment rose from $717 million in fiscal 4Q15 to $750 million in fiscal 3Q16. They were driven by strong double-digit growth in its cloud-based Meraki platform and partially offset by declines in its controller business.

A WLAN (wireless local area network) uses radio waves to connect devices such as laptops and smartphones to the Internet. When an individual or a business connects a laptop to a Wi-Fi hotspot at a café, hotel, lounge, or other location, it’s connecting to that business’s wireless network.

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Cisco has a market share of 45.2%

At the end of 1Q16, Cisco’s (CSCO) WLAN revenue rose by 2.7% YoY, and its market share was 45.2% compared to 45% in 4Q15 and 47.8% in 1Q15. Cisco’s acquisition of Meraki is one of the company’s key revenue and growth drivers.

Aruba Hewlett-Packard Enterprise (HPE) is another major player in this market with a share of 15.8% in 1Q16 compared to 15.9% in 4Q15 and 17.6% in 1Q15. Ruckus Wireless’s (RKUS) revenues grew by 21% YoY, and its market share rose to 7.7% in 1Q16 from 6.7% in 4Q15 and 6.9% in 1Q15.

Revenues for Ubiquiti and Aerohive also grew significantly YoY in 1Q16 by 63.3% and 62.9%, respectively. Ubiquiti accounted for 4.3% of the overall market in 1Q16, and Aerohive accounted for 2.3%.

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