Telecom Lead India: Cisco’s telepresence and video conferencing revenue declined 17 percent in second quarter of 2012 sequentially and market share fell 5 points.

Despite challenging market conditions, Cisco leads the video conferencing market in Q2.

The enterprise video conferencing and telepresence market revenue fell 6 percent to $644 million in the second quarter.

PBX-based systems grew in the second quarter of 2012. The double-digit growth was driven by videophones.

Unit shipments of telepresence and desktop systems are down by more than 45 percent year-over-year.

While demand for enterprise videoconferencing and telepresence equipment remains strong, the growth rate is slowing.

Infonetics forecasts the overall enterprise videoconferencing and telepresence equipment market to grow to $4.7 billion worldwide by 2016.

“Economic woes in Europe, declines in public sector spending, and a shift toward lower-priced video conferencing products drove sales of video conferencing and telepresence equipment lower from the year-ago quarter,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

 

“We view the current revenue slowdown as temporary rather than a fundamental decline in demand, as overall shipments of hardware endpoints are still up by double digits year-over-year, signaling on-going strong demand for videoconferencing capabilities,” Machowinski added.

[email protected]