However the UK fared better than many of the Western European markets and showed some signs of recovery with Q2 2011 extensions shipped up 2% against Q1 2011 and up 10% against Q4 2010.
Significantly the year on year decline in Q2 2011 in the Above 100 Extensions market was driven solely by the 1001+ extensions segment which was down 45% against Q2 2010. However it should be noted that the 1001+ segment represented a significant deviation from the market trend due to a handful of very large deals delivered in Q2 2010. All other segments in this market were in growth, with the largest growth seen in the 251-500 segment which was up 18%.
In the Below 100 Extensions market (excluding Micro PBX products), the greatest decline in the 11-30 extensions space down 6% against Q2 2010, while the only segment in growth was the 2-10 segment up 4%.
Avaya led the UK PBX market in Q2 2011, with a 24% total market share, while Mitel Networks and Cisco, both with 23% of the market, grew share to become closer challengers to Avaya in second and third position respectively. Avaya continued to lead in the Below 100 extensions market, followed by Mitel Networks. In the Above 100 extensions market, Cisco retained its leadership position, followed by Mitel Networks.
In Q2 2011, 60% of extensions deployed at the desktop in the UK were IP, compared to 56% in Q2 2010, the highest IP penetration rate in Western Europe. IP penetration continued to grow in the Below 100 extensions segment reaching 44% in Q2 2011 compared to 39% in Q2 2010. In the Above 100 extensions market, IP penetration rose from 73% in Q2 2010 to 76% in Q2 2011. Cisco represented 33% of IP extensions in the UK up from 28% in Q2 2010, while Mitel Networks remained in second position with a 27% market share up from 24% in Q2 2010.