Huawei and ZTE surge in optical network hardware market in Q2





The global optical network equipment market, including WDM and SDH/SONET equipment, jumped 13 percent in 2Q11, following an 11 percent decrease in 1Q11, Optical equipment spending is up year-over-year in all regions and rolling 12-month trends remain positive, according to Infonetics Research.





Year-over-year, from the second quarter of 2010 to the second quarter of 2011, WDM optical network equipment spending is up 37 percent and the overall optical market is up 21 percent.





ROADM equipment spending set another new high in 2Q11, rising 9 percent sequentially; for the first 6 months of 2011, ROADM equipment shipments are up a stunning 55 percent over the comparable period in 2010.





ZTE and Huawei reported very strong results in both Asia Pacific and EMEA (removing the contribution of these vendors to EMEA would result in a sequential decline in the region)





North America posted modest quarter-over-quarter gains with good performances by Fujitsu and Tellabs and Japan posted results in 2Q11 that were better than in 2Q10.





The strength of the optical market in the EMEA region needs to be qualified: 5 percent of the gains are due to currency effects, and all of the growth came from ZTE and Huawei.





“Our expectations for single-digit market growth this year remain in reach. If global optical network equipment spending in the second half of 2011 is flat with the first half, total spending for 2011 will be up 6.5 percent,” said Andrew Schmitt, directing analyst for optical, Infonetics Research.





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