The global optical components (OC) market contracted 0.2
percent sequentially in the third quarter of 2011 to $1.57 billion, due to
market softness owing mainly to macroeconomic uncertainty.
Ovum expects a double-digit revenue decline in the fourth
quarter due to the production shutdown from flooding in Thailand and continued
Although there has been a slight decline in the sector,
market leader Finisar grew by three per cent sequentially but lost market share
on a rolling Q4 basis,” said Daryl Inniss, Ovum analyst
and author of the market alert
Ovum expects a weak first half of 2012 as the impact of
floods and macroeconomic uncertainty persists and strong price pressures result
in steep 2012 price declines.
We are hearing about strong price pressures in the
current negotiations among the key players, and this will take effect in 2012.
Most of the negotiations are at the lower end of the traditional price decline
scale. This aggressive pricing is a signature of the competitive environment,
exasperated by supply constraints due to the Thai floods. These lower prices
will affect both revenues and the bottom line,” Innis added.
Meanwhile, according to the report findings, among the
top 10 OC suppliers, Fujitsu Optical Components posted the strongest quarter
with growth of 28 per cent sequentially and a gain of 50 per cent versus the
same quarter last year. Oclaro meanwhile posted the weakest performance, with
revenues six per cent less than in the previous quarter.
All is not lost though; we believe there will be strong
growth between the second and third quarter of 2012. The pent-up demand will
drive the market to a strong second half of 2012, even as macroeconomic
uncertainty persists,” Inniss added.
By Telecomlead.com Team