How Will Cisco’s Wireless Segment Perform in Fiscal 4Q16?



Wireless LAN market grew by 4.5% YoY in 1Q16

According to IDC, the total Wireless Local Area Network (or WLAN) market rose 4.5% YoY (year-over-year) and fell 10.7% on a sequential basis (quarter-over-quarter) in 1Q16. The Enterprise WLAN market rose by 8.6% YoY in 1Q16.

“2016 is off to a strong start in terms of WLAN market growth, compared to the situation in the first quarter of 2015,” said Nolan Greene, senior research analyst, Network Infrastructure at IDC. “With no major macroeconomic or geopolitical disruptions during the quarter, and as many network refreshes came due, WLAN spending trended upward in 1Q16.”

Article continues below advertisement

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 key revenue and growth drivers for the firm.

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’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. While Ubiquiti accounted for 4.3% of the overall market in 1Q16, Aerohive accounted for 2.3%.

How did Cisco’s Wireless segment perform in fiscal 3Q16?

Cisco’s Wireless business saw revenues rise by 1% YoY (year-over-year) in fiscal 3Q16. Revenues in this segment rose from $611 million in fiscal 3Q15 to $615 million in fiscal 3Q16 driven by strong double-digit growth in its cloud-based Meraki platform and partially offset by declines in Cisco’s controller and access point businesses.


More From Market Realist