Juniper Gaining on Cisco as Router Market Shrinks

A slowdown in sales of Internet gear hasn't slowed Cisco's (CSCO Quote) retreat in the core networking business.

Though it remains far and away the leader in sales of so-called core routers, the computers that direct traffic on the Internet, Cisco saw its share of the market fall to 59% in the first quarter from 65% in the fourth quarter. Rival Juniper (JNPR Quote) continued to benefit at Cisco's expense, boosting its share to 38% from 34% in the prior quarter. And tiny Avici (AVCI Quote) gained a point to capture 2% of the market, according to market researcher Dell'Oro Group.

Dell'Oro says total core router sales for the first quarter fell 10%, to $753 million from $835 million in the fourth quarter. Companies like Cisco have been hard-hit in recent quarters by the economic slowdown and an industrywide pullback in equipment spending as emerging and established telecom network operators alike seek to conserve cash. ...