PBX Sales Fall over the Cliff in Q4 2008

MZA has recently released its latest figures on the PBX and IP PBX market in the UK in its publication ”The UK Quarterly Corded PBX and IP PBX Report”. The report shows that the total market in Q4 2008 (period October to December 2008) registers a decrease of 20% compared to the same quarter in 2007, reaching just under 580 thousand extensions.

Volumes declined by 24% in the below 100 extensions market, while the above 100 extensions market registers a fall of 15%.

The heaviest losses are seen in the smallest market segments of Micro PBX and Other 2-10 extensions, which drop by 54% and 28% respectively. The other segments in the below 100 extensions market also fall by between 21% and 25% in Q4 2008 compared with Q4 2007.

Losses in the above 100 extensions markets are slightly less severe, though all segments except the 501-1000 extensions segment exhibit double-digit declines. The heaviest loss is attributable to the 1001+ extensions market, which decreases by over 25% compared to the same quarter in 2007.

Cisco lead the UK PBX market, with an 18% total market share, while Nortel drops into second position with 17%, and Avaya takes third position. It is worth noting that nearly all vendors witness declines in Q4 2008 business compared to Q4 2007.

The report shows Nortel as the leading manufacturer in the below 100 extensions category, followed by Mitel Networks and Panasonic.

In the above 100 extensions market, Cisco retains its leadership position, followed by Avaya and Nortel.

In Q4 2008, 50% of extensions deployed at the desktop in the UK are IP, compared to 44% in Q4 2007. IP penetration continues to grow in the below 100 extensions segment, despite the volume of IP extensions remaining flat compared to Q4 2007. This compares with a decline of 15% in the volume of IP extensions in the above 100 extensions segment. IP extensions account for 28% of all extensions being sold in the below 100 extensions market, up from 21% in Q4 2007. Meanwhile, nearly 75% of extensions in the above 100 extensions market are deployed as IP.

Cisco represents around a third of IP extensions in the UK, while Mitel Networks keeps its second position this quarter with a share of just under 20%. In the below 100 extensions market, Mitel Networks is the leading vendor for IP extensions representing 26% of IP extensions sold in this area of the market. Cisco is in second position here, with a share of around 25%, and continues to lead in the above 100 extensions market by a significant margin.