FRAMINGHAM, USA: The combined consumer and enterprise worldwide wireless local area network (WLAN) market segments experienced year-over-year growth of 12.7 percent in the second quarter of 2012 (2Q12).
According to the 2Q12 results published in the International Data Corp. (IDC) Worldwide Quarterly WLAN Tracker, the enterprise segment continued on its path of torrid growth with an impressive 24.8 percent increase over the same period last year. 2Q12 was the seventh quarter in the row, and nine out of the last ten, with annual growth in access of 20 percent.
"While the momentum with BYOD continues unabated, the market got an additional boost from the education segment buying season and that is reflected in the second quarter results," said Rohit Mehra, director, Enterprise Communications Infrastructure, at IDC. "Along with the increasing use of Wi-Fi by service providers to offload cellular data traffic, current market drivers in key enterprise verticals such as education will ensure the market for enterprise-class WLAN devices and solutions will see continued traction, and that the market is expected to stay vibrant for the foreseeable future."
From a geographic perspective, the enterprise WLAN market grew fastest in Japan and in Latin America with 64.2 percent and 58.7 percent year-over-year growth, respectively. The Europe, Middle East, and Africa (EMEA) region had a very strong quarter overall as well with 30.2 percent year-over-year growth. EMEA achieved this growth despite the fact that Italy, Spain, Portugal, and Greece combined actually declined 0.5 percent year-over-year in 2Q12.
North America grew 25.4 percent year over year and, as the largest global region, continues to be a market of relative strength. On the other hand, Asia/Pacific (excluding Japan) grew just 3.1 percent year over year in 2Q12 as Korea, India, Singapore, Thailand, and Malaysia all declined on a year-over-year basis and China increased only 2.2 percent year over year.
"The strong broad-based results in the enterprise WLAN market, especially from some key countries and regions, as well as several established and emerging vendors, indicates that enterprise mobility remains high on the priority list of many CIOs," said Petr Jirovsky, senior research analyst, Worldwide Networking Trackers Group.
Key enterprise WLAN vendor updates
* Cisco's 2Q12 worldwide enterprise WLAN revenue grew a strong 36.7 percent year over year reaching $498 million in the quarter. The North American market accounted for 57.8 percent of Cisco's worldwide WLAN revenue in 2Q12. Cisco's worldwide market share now stands at 52.4 percent, up from 51.2 percent in 1Q12 and from 47.8 percent in 2Q11.
* Aruba (excluding its OEM business) grew its revenues 17.5 percent year over year in 2Q12, and now holds 11.1 percent of the enterprise WLAN market.
* HP underperformed the overall enterprise WLAN market in 2Q12 and was essentially flat year over year. As a result HP's market share declined from the 7.3 percent recorded in 2Q11 to 5.9 percent this quarter.
* Aerohive, Meraki and Ruckus significantly outperformed the overall enterprise WLAN market.
Wednesday, September 5, 2012
Monday, September 3, 2012
China to overtake USA in smartphone shipments in 2012
FRAMINGHAM, USA: Strong end-user demand and an appetite for lower-priced smartphones will make China (PRC) the largest market for smartphones this year, overtaking the United States as the global leader in smartphone shipments. According to the International Data Corp. (IDC) Worldwide Quarterly Mobile Phone Tracker, China will account for 26.5 percent of all smartphone shipments in 2012, compared to 17.8 percent for the United States.
"Looking ahead, the PRC smartphone market will continue to be lifted by the sub-US$200 Android segment," said Wong Teck-Zhung, senior market analyst, Client Devices, IDC Asia/Pacific. "Near-term prices in the low-end segment will come down to $100 and below as competition for market share intensifies among smartphone vendors. Carrier-subsidized and customized handsets from domestic vendors will further support the migration to smartphones and boost shipments. Looking ahead to the later years in the forecast, the move to 4G networks will be another growth catalyst."
"Regionally, we expect smartphone demand to flow down to lower-tier cities," added James Yan, senior market analyst for Computing Systems Research at IDC China. "After going through a period of sustained high growth, top-tier cities are likely to see decelerating smartphone growth rates. In contrast, secondary cities are expected to experience accelerated smartphone growth, with strong demand for low-cost models as well as high-end models, which are desired as status symbols."
"The fact that China will overtake the United States in smartphone shipments does not mean that the U.S. smartphone market is grinding to a halt," said Ramon Llamas, senior research analyst with IDC's Mobile Phone Technology and Trends program. "Now that smartphones represent the majority of mobile phone shipments, growth is expected to continue, but at a slower pace. There is still a market for first-time users as well as thriving upgrade opportunities."
"In addition to China and the United States, several other countries will emerge as key markets for smartphone shipment volume over the next five years," said Kevin Restivo, senior research analyst with IDC's Worldwide Mobile Phone Tracker program. "High-growth countries such as Brazil and Russia will become some of the most hotly contested markets as vendors seek to capture new customers and market share."
Top five markets for smartphone shipments
As it becomes the leading country for smartphone shipments this year, the PRC smartphone market will continue to grow, primarily on demand for lower-cost handsets. While this bodes well from a volume perspective, it also means lower average sales values (ASVs), thinner margins, and increased competition from all players. Over the course of the forecast, China's share of the global smartphone market will decline somewhat as smartphone adoption accelerates in other emerging markets.
Smartphone shipments into the United States will increase as users upgrade their devices and feature-phone users switch over to smartphones. Furthermore, a combination of lower-priced models, expansion of 4G networks, and the proliferation of shared data plans will encourage continued smartphone adoption. Smartphones are already the device of choice at the major carriers, and regional and prepaid carriers are following suit and competing with alternative service plans.
With smartphone penetration in India currently among the lowest in Asia/Pacific, the market has tremendous untapped growth potential. Low-end smartphones offering dual-SIM capability and local apps and priced around $100 will rapidly bring this market to life. Although 3G data plans are currently too expensive for the majority of consumers in India, IDC expects the popularization of 3G, and in later years 4G, to drive smartphone uptake as operators roll out more affordable data plans and generous subsidies while expanding offerings to tier 2 and tier 3 cities. The affordability of service plans will be another important key to smartphone adoption in India.
Smartphone growth in Brazil will be bolstered by strategic investments by mobile operators, smartphone vendors, and regulators. Operators' focus on increasing ARPU will drive greater demand for smartphones while smartphone vendors will look to reap greater profitability from offering such devices. The Brazilian government, meanwhile, will offer tax exemptions for smartphones and protect local manufacturing against foreign vendors. These factors, combined with solid end-user demand, will drive smartphone volumes in the coming years.
The United Kingdom has been one of the fastest growing smartphone markets in Western Europe, driven by the high operator subsidies and long-term post-paid contracts. Over the forecast period, smartphone shipments will continue to increase due to the introduction of LTE and a new range of services that will appeal to heavy smartphone users. In addition, price erosion on HSPA devices will also attract feature phones users. Growth rates will slow in the later years of the forecast as penetration plateaus and operators seek out alternative subsidy models.
"Looking ahead, the PRC smartphone market will continue to be lifted by the sub-US$200 Android segment," said Wong Teck-Zhung, senior market analyst, Client Devices, IDC Asia/Pacific. "Near-term prices in the low-end segment will come down to $100 and below as competition for market share intensifies among smartphone vendors. Carrier-subsidized and customized handsets from domestic vendors will further support the migration to smartphones and boost shipments. Looking ahead to the later years in the forecast, the move to 4G networks will be another growth catalyst."
"Regionally, we expect smartphone demand to flow down to lower-tier cities," added James Yan, senior market analyst for Computing Systems Research at IDC China. "After going through a period of sustained high growth, top-tier cities are likely to see decelerating smartphone growth rates. In contrast, secondary cities are expected to experience accelerated smartphone growth, with strong demand for low-cost models as well as high-end models, which are desired as status symbols."
"The fact that China will overtake the United States in smartphone shipments does not mean that the U.S. smartphone market is grinding to a halt," said Ramon Llamas, senior research analyst with IDC's Mobile Phone Technology and Trends program. "Now that smartphones represent the majority of mobile phone shipments, growth is expected to continue, but at a slower pace. There is still a market for first-time users as well as thriving upgrade opportunities."
"In addition to China and the United States, several other countries will emerge as key markets for smartphone shipment volume over the next five years," said Kevin Restivo, senior research analyst with IDC's Worldwide Mobile Phone Tracker program. "High-growth countries such as Brazil and Russia will become some of the most hotly contested markets as vendors seek to capture new customers and market share."
Top five markets for smartphone shipments
As it becomes the leading country for smartphone shipments this year, the PRC smartphone market will continue to grow, primarily on demand for lower-cost handsets. While this bodes well from a volume perspective, it also means lower average sales values (ASVs), thinner margins, and increased competition from all players. Over the course of the forecast, China's share of the global smartphone market will decline somewhat as smartphone adoption accelerates in other emerging markets.
Smartphone shipments into the United States will increase as users upgrade their devices and feature-phone users switch over to smartphones. Furthermore, a combination of lower-priced models, expansion of 4G networks, and the proliferation of shared data plans will encourage continued smartphone adoption. Smartphones are already the device of choice at the major carriers, and regional and prepaid carriers are following suit and competing with alternative service plans.
With smartphone penetration in India currently among the lowest in Asia/Pacific, the market has tremendous untapped growth potential. Low-end smartphones offering dual-SIM capability and local apps and priced around $100 will rapidly bring this market to life. Although 3G data plans are currently too expensive for the majority of consumers in India, IDC expects the popularization of 3G, and in later years 4G, to drive smartphone uptake as operators roll out more affordable data plans and generous subsidies while expanding offerings to tier 2 and tier 3 cities. The affordability of service plans will be another important key to smartphone adoption in India.
Smartphone growth in Brazil will be bolstered by strategic investments by mobile operators, smartphone vendors, and regulators. Operators' focus on increasing ARPU will drive greater demand for smartphones while smartphone vendors will look to reap greater profitability from offering such devices. The Brazilian government, meanwhile, will offer tax exemptions for smartphones and protect local manufacturing against foreign vendors. These factors, combined with solid end-user demand, will drive smartphone volumes in the coming years.
The United Kingdom has been one of the fastest growing smartphone markets in Western Europe, driven by the high operator subsidies and long-term post-paid contracts. Over the forecast period, smartphone shipments will continue to increase due to the introduction of LTE and a new range of services that will appeal to heavy smartphone users. In addition, price erosion on HSPA devices will also attract feature phones users. Growth rates will slow in the later years of the forecast as penetration plateaus and operators seek out alternative subsidy models.
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