Cisco Systems Inc., well known for selling devices that direct Internet data, plans to expand its share of the consumer electronics market by selling phones, radios and home theater equipment.In an interview with the Financial Times, Charles Giancarlo, chief development officer at Cisco, said that increasing demand from customers for networked devices gives Cisco the chance to get into a new market and compete with the likes of Sony and Samsung.

“Consumer electronics companies have been able to compete on a standalone device but the dynamics of the market are changing,” he said. “The Internet and new networking requirements are enough of a disruptor for us to enter a new market.”

According to the newspaper, Cisco’s relationship with “online content companies” like Google and Yahoo! will also give it an advantage over existing device companies.

Of course, Cisco does not only sell big routers to telcos — it owns Linksys which makes wireless home routers, webcams and other accessories. In early January Cisco made an investment in Zensys — a company which makes home control devices.

The San Jose, Calif., company began in 1984 as a routing equipment manufacturer before branching out more fully into the computer communications market, including Ethernet switches, firewalls and various WiFi technologies.

Like other Silicon Valley companies that survived the bursting of the Internet Bubble, Cisco is looking to diversify to maintain its market share and keep its shareholders happy.