Cisco and Polycom videoconferencing revenue dip significantly in Q1 2013

Telecom Lead India: Videoconferencing equipment revenue of Cisco and Polycom decreased significantly in Q1 2013.

Cisco’s videoconferencing equipment revenue decreased 17.2 percent.

However, Cisco remains the worldwide video equipment market leader with 43.4 percent of the market, down slightly from both Q1 2012 and Q4 2012.

Polycom’s videoconferencing equipment revenue decreased 11.2 percent. Polycom’s video equipment market share rose to 26.5 percent from 23.6 percent in Q4 2012, as the vendor introduced a range of new video products and services to the market in 2012.

IDC says videoconferencing equipment revenue declined 13.2 percent year over year to $563.4 million in the first quarter of 2013.

Endpoints, which include multi-codec immersive telepresence, single-codec telepresence, and personal videoconferencing, declined 10.7 percent and video network infrastructure decreased 20.5 percent.

Latin America declined 3.5 percent, followed by the 9.1 percent year-over-year decline in Asia/Pacific and the 10.1 percent decrease in Europe, Middle East, and Africa (EMEA). North America was a particular area of weakness this quarter with its 20.3 percent year-over-year drop.

Videoconferencing vendors point to longer procurement cycles, the still challenging macroeconomic situation in EMEA, and a slowdown in IT spending in some key global markets such as China and India as reasons for the challenging first quarter results.

IDC believes that increasing customer considerations over more software-centric solutions, virtualization, cloud-based offerings, and real-time browser-based communications are beginning to challenge the video equipment market as well.

Pix source: Forrester

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