Mixed 3Q13 Revenue Results for Videoconferencing Equipment Market-IDC Says
In the third quarter of 2013, the worldwide enterprise videoconferencing and telepresence equipment market has posted mixed results, according to the International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence QView. Quarter over quarter, the overall videoconferencing equipment revenue has increased 8.2 percent but has dropped 9.7 percent year over year.
IDC estimates the total 3Q13 global video equipment market revenue to reach $576 million. Quarterly revenue growth showed an increase across all market segments, but there was a decline in the yearly revenue growth.
Revenue for multi-codec immersive telepresence equipment bounded 13.1 percent quarter over quarter, but waned 16.3 percent year over year. For video infrastructure equipment, which includes hardware MCUs and other video-related products, the revenue went up by 13.7 percent quarter over quarter and dropped 16.7 percent year over year. A quarter-over-quarter increase of six percent and year-over-year decrease of five percent were posted in 3Q13 for room-based video systems. Desktop video systems, on the other hand, showed a quarter-over-quarter revenue growth of 4.7 percent and a year-over-year decline of 13.6 percent.
This year's third quarter results showed positive quarter-over-quarter revenue growth for the following regions: Latin America (41.8 percent); Europe, Middle East, and Africa or EMEA (22.6 percent); and North America (3.9 percent). Asia/Pacific was the sole region that posted a decline (-3.7 percent) for quarter-over-quarter revenue growth.
In a year-over-year perspective, the 3Q13 revenue growth showing for the different regions is as follows: Asia/Pacific (-13.7 percent), North America (-18.2 percent), EMEA (3.4 percent), and Latin America (10.7 percent).
Capturing 44.7 percent of the worldwide market in enterprise videoconferencing equipment, Cisco maintains its lead against other vendors, according to the latest 3Q13 results from IDC. Cisco posted a quarter-over-quarter revenue increase of 17.9 percent and a year-over-year decline of 7.6 percent in video equipment revenue.
Ranking next to Cisco with a 23.9 percent worldwide market share in enterprise videoconferencing equipment, Polycom's 3Q13 performance as reported by IDC included a quarter-over-quarter revenue decline of 11.4 percent and a year-over-year drop of 14.5 percent.
Ranking third among key enterprise videoconferencing equipment vendors for this year's third quarter, Huawei took in a 10.1 percent share of the worldwide enterprise videoconferencing market. Huawei posted a quarter-over-quarter revenue jump of 43.2 percent and a year-over-year growth of 2.5 percent.
"Interest in video and collaboration technology and applications helped the quarterly revenue numbers. But the lingering macroeconomic situation - including some softness in emerging markets, the recession in Europe, and the sequestration in the U.S. (i.e. budget cuts) - produced some cautionary IT spending that has impacted year-over-year video equipment revenue growth so far in 2013," said Rich Costello, senior analyst for Enterprise Communications Infrastructure at IDC. "In addition and most significantly, we are definitely starting to see the impact of lower-cost video systems and more software-centric products and offerings on the enterprise video equipment market." (KOM) Link. Link.
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