Cisco and Polycom revenues from videoconferencing dip by 14.7% and 15.2% in Q3

Telecom Lead India: Videoconferencing revenue of both Cisco and Polycom declined by 14.7 percent and 15.2 percent, respectively, in Q3 2012.


IDC said Cisco’s enterprise videoconferencing and telepresence revenue increased 17.9 percent sequentially. But it decreased 14.7 percent on an annual basis. Cisco market share stands at 43.3 percent, up from 39.3 percent in 2Q12 but down from 48.3 percent in 3Q11.

Polycom’s revenue declined 11.8 percent quarter over quarter and 15.2 percent year over year in 3Q12, but it remains the clear number two vendor in the market with a 25.0 percent share.

“Despite the overall weak 3Q12 performance in the worldwide enterprise videoconferencing and telepresence market, we still see adoption being driven by video integrations with vendors’ UC and collaboration portfolios, and with the increasing use of video among small workgroup, desktop, and mobile users,” said Petr Jirovský, senior research analyst, Worldwide Networking Trackers Research.

IDC said video as a key component of collaboration continues to place high on the list of priorities for many organizations and it anticipates a return to positive market growth in 2013.

Videoconferencing revenue declined 4.8 percent year over year though it increased 7.1 percent quarter over quarter.

The enterprise videoconferencing and telepresence market is showing significant differences in the performance of major geographies.

The continued strong market results in Latin America and Asia/Pacific, which grew 13.7 percent and 9.7 percent year over year respectively, were not enough to fully offset the 11.5 percent year-over-year decline in North America and the 10.8 percent year-over-year decrease in Europe, Middle East, and Africa (EMEA) in 3Q12.

Multi-codec immersive telepresence continues to decline rapidly with a 35.8 percent year-over-year drop. Other videoconferencing components (gateways, firewalls, etc.) declined 26.8 percent year over year. On the other hand, the single-codec videoconferencing segment increased 0.4 percent, personal videoconferencing grew 8.7 percent, and video MCUs were up 5.0 percent year over year in 3Q12.

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