MELBOURNE, AUSTRALIA: The global optical components (OC) market posted a sequential annual growth of 9 percent in the fourth quarter of 2011, according to Ovum.
In a new market share alert, the independent telecoms analyst firm found that 4Q11 was impacted by the Thai floods which caused a drop in revenues to $1.5 billion, with contractions of 7 percent sequentially and 8 percent versus 2010 in the same period.
Daryl Inniss, Practice Leader of Component at Ovum and author of the market alert said: “Long distance transceiver/transponder was the only product group that out performed both the annual and quarterly market growth. ROADMs and filters was the only group that contracted for the year yet posted better than average sequential performance in 4Q11. While top 10 suppliers Avago and Fujitsu Optical Component posted the strongest sequential annual and quarterly rolling 4Q market share growth.”
According to the study, 1Q12 will have a revenue growth which ranges between 1 percent to 8 percent and this would be largely due to manufacturing capacity recovery. The most likely forecast scenario estimates the market reaching $6.9 billion in 2012.
Inniss added: “Although recovery is in progress, revenue growth will still be affected in 1Q12 due to manufacturing constraints. Slower purchasing due to the uncertainty from the global macro economy, and lower prices, a consequence of the annual telecom price negotiations, will have a significant impact for 1Q12.”