“The disruptions caused by component shortages and supply chain bottlenecks that started over two years ago are still occurring,” says Dell’Oro vp P Jimmy Yu, “once supply freed up, router manufacturers were able to fulfill backlogged orders at a faster pace, driving High End Router revenue up 12 percent year-over-year in the first half of 2023. However, this turned into extra inventory at customer sites, causing them to rationalize future new orders. We believe it may be another two quarters before inventory levels return to normal levels at these service providers,” added Yu.