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Tag: market-data

  • MZA: Avaya Continues to Lead PBX Market

    The latest figures released by analyst firm MZA have shown that the Corded PBX market (excluding Micro PBX products) increased by 16% in Q2 2010 compared to Q2 2009 at a global level.

    According to MZA, these results show mixed fortunes depending on the sales region and point towards a turbulent road to recovery with fragile growth rates.

    The report finds that Western Europe, for example, which represented more than one-quarter of the overall global market, showed only weak levels of growth as volumes here increased by a meagre one percent in comparison to Q1 2010.

    One of the major contributing factors to this was the result for the UK market, ordinarily the second largest in the region, which declined in Q2 2010 by 5% compared to Q1 2010. However, in a reversal of fortunes, Germany demonstrated growth of 8% in Q2 2010 compared to Q1 2010 after it previously had dropped by 12% sequentially. According to analysts, both of these results illustrate the extremely volatile nature of the recovery in Western Europe.

    North America, on the other hand, posted an encouraging set of results this quarter, both in comparison to the same quarter of last year (up by 18%) and sequentially (up by 13%), although this still leaves the market adrift of its 2008 average quarterly run-rate of over three million extensions.

    Research by MZA shows that one of the biggest increases globally was recorded in Eastern Europe, where volumes have started to pick up following some of the toughest trading conditions. In Q2 2010, the market increased by 35% compared to Q2 2009. Much of the increase was driven here by Russia, where volumes are normalising but still have a long way to go.

    The second largest growth rate was registered in Asia Pacific (excluding Japan), where an increase of 19% in Q2 2010 was recorded over Q2 2009.

    Avaya continued to lead the world PBX market, growing market share from 13% in Q1 2010 to 15% in Q2 2010. Its leadership position was first attained as a result of the acquisition of Nortel.

    Cisco was in second position with a stable 12% market share while Panasonic moved from fourth position in the last quarter to third position in this, maintaining its 11% share. Panasonic continued to lead in the Below 100 Extensions sector with a steady 16% market share, ahead of NEC in second position and Avaya in third position. In the Above 100 Extensions market, Cisco was the market leader with a 24% market share, followed by Avaya.

    World IP Extensions Market

    The raport also finds that the IP extensions market grew by 27% compared to Q2 2009, which was greater than the 16% rise seen in the total extensions market. The Below 100 IP Extensions market grew by 33%, while the Above 100 IP Extensions market increased by 25%.

    In both instances, increases in the IP extensions market far outweighed the growth seen in the total market and also the growth in the Below 100 Extensions market continued to outpace the growth seen in the Above 100 Extensions market as the adoption of IP to the desktop becomes more widespread.

    Cisco maintained its leadership of the IP extensions market with a 33% market share, followed by Avaya at 21% and NEC with 10% market share.

  • Cell Phone Antenna Troubles? Radio Frequency MEMS Come to the Rescue

    Help may be on the way for iPhone 4 users frustrated by dropped calls with the arrival of Radio Frequency Microelectromechanical Systems (RF MEMS), semiconductors that can improve the performance of antennas in cell phones, according to the market research firm iSuppli.

    Long plagued by technological hurdles and other disappointing setbacks, RF MEMS are finally ready for the big time, with revenue projected to double in 2010 and more than triple in 2011, as the analysts say.

    From slightly less than $4 million in 2006, global RF MEMS revenue is anticipated to climb to $8.1 million this year—and then surge to $27.9 million in 2011, according to iSuppli. By 2014, revenue will reach a whopping $223.2 million—a far cry from the industry’s extremely modest beginnings.

    “More than 50 percent of cell phones shipped in 2014 will feature some form of front-end-module tuning using RF MEMS technology,” said Jérémie Bouchaud, principal analyst for MEMS and sensors at iSuppli.

    “The implementation of RF MEMS switches and varactors in mobile phones could help boost the performance of smart phones like the iPhone 4, which made news headlines recently because of a problematic antenna that resulted in dropped signal strength. RF MEMS are also ideal for impedance matching of the Power Amplifier,” he said.

    Although other technologies will address antenna issues, including SoS FETs and BST varactors, MEMS deliver the best performance in terms of insertion loss.

    According to iSuppli analysts, RF MEMS switches have been used in small volumes in instrumentation applications because of their small form factor and excellent RF performance. However, despite initial promise, they failed to take off on a large scale because of myriad commercialization and technological obstacles. All that is about to change as RF MEMS technology begins to realize its potential because of strong product offerings from a number of major suppliers.

    The report finds that Seven firms are sampling RF MEMS products.

    California-based WiSpry Inc. and Japan’s TDK-Epcos are offering RF MEMS for high-volume cell phone applications. On another front, U.S. firms Analog Devices Inc., Radant Technologies Inc. and XCOM Wireless Inc.—in cooperation with relay manufacturer Teledyne Technologies Inc.—as well as Japanese supplier Omron Corp. are targeting high-end applications for testing and instrumentation such as ATE and RF test. U.S. startups Radant MEMS and MEMtronics focus on defense applications.

    "In particular, interest is growing among mobile handset manufacturers on how RF MEMS can be used for the front-end tuning of cell phones to improve antenna performance, given the advent of new wireless standards like LTE for 4G technology. WiSpry—which has garnered several design wins for its MEMS varactors—is expected to commence volume production by the fourth quarter this year," said Bouchaud.

  • Report: The Future of Consumer VoIP

    According to the recent report "The Future of Consumer VoIP" by Research and Markets, it is important to distinguish between a profitable business that successfully sells VoIP services and a profitable VoIP business.

    “Successful VoIP businesses are driven by other services the company offers, and by services that align with customers’ perceived needs not by the VoIP business alone," as the research firm claims.

    In the early 2000s, telecom industry experts widely expected VoIP to change the dynamics of the voice communications business. But a decade later, the largest providers of consumer Internet voice services are, with one exception, conventional telecommunications companies. Some are pioneers and innovators, some are not. “What they do share, however, is a market strategy that doesn’t rely solely on price,” the analysts say.

    According to the report, the most profitable over-the-top VoIP providers are those that quickly leveraged their success into building their own networks. Successful VoIP providers offer multiple communications services, as well as services aligned with the key needs of targeted markets.

    The research shows that telecoms have more natural advantages in the VoIP business than incumbency. They understand consumer expectations, and the migration to all-IP networks allows them to leverage network consolidation.

    Analysts note that the pressure is on VoIP service providers to make VoIP mobile. Driven by growing mobile handset capabilities and broadband subscriptions, and continued high prices for international calls, the market for mobile VoIP is developing quickly. “The mobile handset is coming into its own as a platform for converged communications,” the research firm states.

    According to the report, the rapidly growing number of mobile smartphones creates opportunities to integrate voice interaction into a wide range of applications, as well as creating opportunities for other types of intelligent, converged appliances reinventing the home phone, for example. Amazon’s Kindle e-book shows the opportunity for mobile communications-equipped "appliances" at mass-market prices.

    Analysts also finds that consumers increasingly want services customized to their needs, preferences and priorities giving VARs, software companies, and internet companies, as well as voice service providers, opportunities increase their value to specific markets and customers.

    The report concludes that consumer VoIP is most successful in the most regulated (non-Communist) markets. “Emerging markets present big risks, but offer big VoIP opportunities because many people in these countries are bypassing conventional telephone service for mobile and VoIP,” according to Research and Markets.

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  • U.S. LCD-TV Market: Samsung Maintains Lead, but Vizio Closes Gap in Q2

    The battle for the top spot in the U.S. LCD-TV market heated up in the second quarter as the gap in market share between No. 1 Samsung and No. 2 Vizio dwindled to less than 1 percentage point, according to the electronic display research firm iSuppli.

    The research show that Samsung in the second quarter held a 0.7 percentage point lead over Vizio in terms of U.S. LCD-TV shipments, compared to 1.3 points in the first quarter. Both companies in the second quarter dramatically outperformed the overall market by offering sets with advanced features desired by U.S. consumers.

    “Leadership in the world’s largest television market—the United States—represents the marquee position for global LCD-TV brands,” said Riddhi Patel.

    “Because of this, companies are competing intensely to secure every point of market share—with the most closely fought battle occurring between South Korea’s Samsung and U.S.-based Vizio. The two companies have swapped quarterly leadership multiple times during the past few years, and now are virtually tied in the race for market leadership,” she added.

    According to the report, U.S. LCD-TV shipments rose by 12.8 percent in the second quarter to 7.36 million units, up from 6.53 million in the first quarter.

    Samsung’s shipments grew at more than twice the pace of the overall market, rising by 26 percent to 1.45 million units, up from 1.15 million in the first quarter. Vizio grew even faster, with its shipments rising by an industry-leading 30.8 percent to 1.39 million units, up from 1.07 million in the first quarter.


    Pattel noted that in the past, the two companies pursued very different strategies to attain LCD-TV market leadership, with Samsung focusing on premium products and Vizio stressing low-cost value-oriented LCD-TVs. However, as U.S. consumer preferences have shifted to higher-end LCD TVs, Vizio has realigned its product line to offer more advanced features.

    “Most LCD-TVs purchased in the United States in 2010 are replacements of first-generation flat panels,” Patel said. “Because of this, U.S. consumers are more informed and demand larger LCD-TVs with better picture quality and more premium features, including 3-D, LED backlighting and built-in Internet connectivity. While Samsung continues to lead these technological trends, including the nascent 3-D TV segment, Vizio has significantly closed the feature gap.”

    Television research from iSuppli’s U.S. TV Consumer Preference Analysis service, which surveys Americans on their attitudes regarding television purchases, illustrates the rising importance of advanced features when buying a television.

    Of consumers surveyed in the second quarter, 17.2 percent said the LCD-TV sets they had purchased used LED backlighting, an increase of 5 percentage points from the first quarter. Furthermore, 60.8 percent of the consumers purchased a 40-inch or larger set in the second quarter of 2010, up from 51 percent during the same period in 2009. Finally, about 32 percent consumers say they connected their new televisions to the Internet.

  • ”Big Seven” Smartphone Applications to Drive Future Hardware Designs

    Smartphone manufacturers need to accommodate seven core smartphone applications, the “Big Seven”, in their next generation handset designs, according to In-Stat.

    These big seven applications include email, games, social networking, instant messaging, mapping & directions, music & radio, and weather.

    Combined, the big seven will account for 7 billion downloads worldwide in 2014, says the research group.

    “In-Stat tracks 26 different categories of smartphone applications,” said Frank Dickson, VP of Research. “A designer can optimize a handset for any one of those application categories. However, it’s the big seven applications that phone designers need to accommodate in each and every device.”

    Recent research by In-Stat found that the three applications that have the highest compound annual growth rates through 2014 are micro blogging, mobile banking and VoIP.

    The report also says that the number of Android apps downloaded is growing at the fastest rate; however, Apple applications still dominate both free and paid downloads.

    “The tsunami of mobile applications has created a hyper-competitive market putting significant pressure on prices and margins,” said Dickson.

    According to In-Stat, productivity applications such as mapping, business and enterprise applications and phone tools & utilities generate 59% of all smartphone application revenue.

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  • BT, T-Systems, Vodafone Among Top Hosted Business VoIP Services Leaders in EMEA

    There are over 100 service providers offering business VoIP services in EMEA and new ones being added every quarter, according to “EMEA Business VoIP Services Leadership Matri,” a new report recently released by Infonetics Research.

    “In all parts of EMEA, including Africa and the Middle East, we are seeing strong deployments of IP Centrex services. In evaluating the top 10 IP Centrex providers across the region, we found the list dominated by incumbent operators,” said Diane Myers, directing analyst for service provider VoIP and IMS at Infonetics Research

    According to him, this is reflective of the services landscape in EMEA, which consists of providers competing nationally rather than regionally, resulting in few of the top 10 providers competing against each other.

    The most interesting result is the growing success of providers focused on FMC (fixed-mobile convergence) capabilities, capitalizing on the trend of businesses moving more employees to only mobile devices, says the report.

    The analysts also found that providers with IP Centrex service offerings in multiple countries have an edge in terms of total subscribers or seats due to the size of their network footprints.

    According to the report, the top EMEA IP Centrex service providers overall are, in no particular order: T-Systems, BT, and Vodafone. There is a growing list of providers close behind this top 10 across Western and Eastern Europe and also Africa, signalling continuing strength in IP Centrex across the region

    Unlike in North America, where IP Centrex providers are predominantly competitive operators with financial constraints, financial stability is a non-factor in analyzing the top 10 providers in EMEA.

    The report also says that, while in North America only a few providers have broken the 100,000-seat mark, the top providers in EMEA are all close to or exceed 100,000 IP Centrex seats

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  • ABI Research: Mobile Data Usage Grows but Data Revenue Lags

    Mobile data usage continues to grow exponentially as 3G technology spreads globally. According to ABI Research, from 2009 to 2015 data usage in Western Europe and North America is expected to increase at a compound annual growth rate of 42% and 55% respectively.

    In 2010, the average North American user is expected to consume 159 megabytes of data – up from 100 megabytes in 2009.

    “Mobile voice has already been surpassed by mobile data traffic on some networks, and this trend will only accelerate,” says ABI Research wireless analyst Bhavya Khanna.

    “This boom in usage is driven by the rapid adoption of smartphones in these markets,” he added.

    According to analysts, the explosion in data traffic does not mean a corresponding rise in data revenues for operators, as the popularity of unlimited or fixed price plans caps revenue even as usage grows. Mobile data revenues are expected to grow at a CAGR of about 18% in North America, in sharp contrast to the increase in usage. This presents a challenge for operators as they look to manage the demands on their networks without a corresponding increase in income.

    ABI Research claims that the growth in data traffic comes at the cost of voice: minutes of use are on the decline in developed markets in North America and Western Europe.

    "However, in emerging markets there is still room for voice usage growth. Increasing competition in Africa has reduced tariffs, resulting in minutes of use per user growing by 9% between 2009 and 2010. There is still much room for growth on the continent, as average usage per subscriber continues to be half of that of the Asia-Pacific region," said Khanna.

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  • Apple to Rise to No. 2 in Semiconductor Spending by 2011

    The phenomenal success of the iPad and iPhone is expected to make Apple the world’s second-largest semiconductor buyer in 2011, potentially positioning the company to become the world’s top chip purchaser in 2012, according to iSuppli.

    The research group predicts that with projected semiconductor spending in 2011 of $16.2 billion, Apple will leap over Samsung, which will drop to the third spot after finishing with $13.9 billion. Apple’s one-step rise in the rankings will move the company to a close second place behind Hewlett-Packard, which will retain its No. 1 ranking next year thanks to $17.1 billion in spending.

    "Leadership in semiconductor spending represents a position of prestige, and an advancement in the rankings means that a company has been successful in introducing new products and that it is allocating more dollars in research and development—two factors that, as it turns out, feed innovation as well," said Min-Sun Moon, Senior Analyst at iSuppli. 

    According to him, in Apple’s case, the move to second place reflects the company’s triumph in the iPhone 4 and iPad, two flagship products that have captured the public’s imagination—and have garnered tremendous sales—on a scale unequaled by rival devices.

    Apple’s expected rise to No. 2—eclipsing Samsung and putting it within a hair’s breadth of Hewlett-Packard— indicates that the company’s investment in its new smart phone and tablet has paid off—and will do so for some time to come, he believes.

    Apple’s anticipated growth in 2011 continues the extraordinary arc of expansion enjoyed by the company in recent times. In 2009, Apple recorded a surprising 13 percent increase in semiconductor spending—a year when most manufacturers posted negative growth. This year, spending by Apple will rise by a staggering 54.0 percent to reach $12.4 billion—the highest growth rate predicted for any company. Next year, spending levels will be augmented by another 30.4 percent for the company to catapult to its vaunted second-place finish.

    According to the analysts, barring any unforeseen mergers and acquisitions by current champion Hewlett-Packard, Apple could well snag the top spot as soon as 2012, ousting a company that has held the lead since early this millennium.

    iSuppli data show that for 2010, a number of OEM companies are set to join Apple and post rapid growth in semiconductor spending levels.

    The next five companies following Apple, in descending order, are Lenovo at 47.1 percent; SanDisk at 44.3 percent; Research in Motion at 42.9 percent; Cisco at 37.3 percent; and Acer at 29.4 percent.

    "Overall, semiconductor consumption will continue to increase in the Asia-Pacific region, given the rise of manufacturing levels in the region and because of outsourcing activity flowing out from other areas. Major markets contributing to this trend include compute platforms, wireless communications and wired communications," concluded Min-Sun.

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  • Wireless Infrastructure Spending to Rise in 2011 as 4G Deployment Starts

    Following two years of declining expenditures, global capital spending on wireless infrastructure equipment is set to return to growth in 2011 as carriers in the developed world start deploying next-generation 4G networks, according to iSuppli.

    The research group says that capital spending on wireless infrastructure throughout the world is projected to reach $40.3 billion in 2011, up 6.7 percent from $37.8 billion in 2010.

    This will reverse the downward trend that first occurred in 2009 and is expected to continue this year. Expenditures dipped 5.7 percent in 2009, and in 2010 will tumble by an additional 2.3 percent to $37.8 billion.

    “The upturn in 2011 signals renewed commitment within the wireless industry to move on expansion plans that had been delayed or put on hold because of the global recession,” said Dr. Jagdish Rebello, senior director and principal analyst for wireless research at iSuppli. “Starting in 2011, wireless carriers in industrialized countries will start to deploy 4G in order to attain faster speeds and to unclog the heavy data traffic generated by the exploding use of smart phones. This 4G-driven growth in capital spending will continue at least through 2014.”

    According to iSuppli, carriers the developed world in 2011 will start to deploy 4G, with most expected to choose Long Term Evolution (LTE). Over the next decade, LTE will become the dominant technology, while WiMAX will be relegated to the status of a niche 4G technology, iSuppli believes.

    Already, a number of wireless carriers have announced support for LTE, including NTT DoCoMo and KDDI in Japan, as well as Vodafone and Orange in Europe. In the United States, Verizon Wireless has announced it will roll out LTE by the end of this year, with AT&T and T-Mobile expected to follow suit in 2011.

    Overall, carriers will work to establish viable business models to achieve greater revenue growth in light of the capital expenditures needed for network upgrades, iSuppli believes. This means that in all likelihood, carriers launching 4G will implement tiered pricing plans based on data access rates. As a result, data traffic in access networks will be prioritized, and customers will be required to pay higher access fees when using high-bandwidth services like mobile video or peer-to-peer mobile video gaming.

    Rebello notes that while wireless carriers in Japan, the United States and Western Europe contemplate launching 4G services in 2011, their counterparts in the developing world will continue to invest in 3G network enhancements.

    "For Latin America, China, India and the rest of the developing world—where wireless penetration has yet to extend to many rural areas—4G is not considered a feasible proposition at this point. Instead, carriers will focus on expanding the geographical coverage of their networks, or seek network-sharing agreements with infrastructure providers to help reduce total capital outlay," Rebello siad.

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  • Consumer LBS Market – a Multi-Billion Dollar Opportunity

    New analysis from Frost & Sullivan , 2010 North American Consumer Location-based Services (LBS) Market – The Wireless Carrier Opportunity, finds that the wireless carrier-generated segment of the North American consumer LBS market amounted to on-deck application software revenues of approximately $718 million in 2009 and forecasts this to reach $1.58 billion in 2015.

    The consumer location-based services sector has experienced tremendous change during the past eighteen months, forcing North American wireless carriers to cope with a vastly different competitive landscape.

    According to the research group, carrier dominance in the North American consumer LBS sector, which was carefully developed during the past decade, is now being directly assaulted by smartphone application storefronts and free off-deck solutions.

    The analysts think that wireless carriers must become more creative and aggressive in leveraging their unique assets if they want to successfully carve out and keep a significant portion of this sector’s potential revenue. Powerful technology and greater customer awareness are driving the consumer LBS market and providing even more opportunities for carriers to partner with top-tier application developers and create, launch, and promote new LBS solutions.

    "In tandem with smartphone advances, carriers are making their networks and locationing capability more accessible to LBS application developers," said Frost & Sullivan Senior Industry Analyst Jeanine Sterling. "Partnerships with location aggregators, open application programming interface (API) platforms, and simpler, quicker certification reviews make it easier for LBS developers to stake a claim to the market."

    However, new monetization models and higher channel fragmentation encourage smartphone users, in particular, to bypass wireless carriers and download LBS solutions directly from the phone’s application store. The majority of location-based applications available through smartphone storefronts are free or available for a one-time fee. In such an environment, carriers will have to strategize cleverly to justify their monthly subscription model. They will also have to find ways to appeal to a smartphone user population that is quickly growing in terms of size and demands.

    According to Sterling, wireless carriers have to bring a strong marketing sensibility to the consumer LBS sector. Their gatekeeper role and control over products and partners have disappeared in the smartphone sector and has been weakened with feature phone users. Carriers need to decide where they can compete successfully in this sector.

    "Some LBS solutions – such as the kid finder services – are just an automatic and perfect fit. Other applications and capabilities may not be as obvious. To thrive in this market, carriers have to be real marketers – monitoring customer needs, identifying product voids, working with creative partners, and publicizing the distinct benefits that carriers bring to today’s mobile user," advises Sterling.

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