However, volumes declined by only 15% compared to Q4 2008. The drop between Q3 2008 and Q4 2008 was 21% so the decline in Q1 2009 was less pronounced.
Volumes declined by 40% in the below 100 extensions market, while the above 100 extensions market registered a fall of 34%. Whereas previously the larger declines had been most intensely felt in the below 100 extensions market, this time the drops were more generic across all segments.
In the above 100 extensions segment, the heaviest loss came in the 1001+ extensions segment, while the other market segments in this area decreased by between 30% and 36% compared to Q1 2008. In the below 100 extensions market, the greatest decline (excluding products that fall into the Micro PBX category) was in the 11-30 extensions space, which fell by 44% compared to Q1 2008. The other segments fell by between 33% and 42%.
These declines have been exacerbated by the fact that Q1 2008 was a strong quarter for the UK market and is a reminder of how quickly the market deteriorated during 2008. Quarter over quarter (Q1 2009 versus Q4 2008) the drops are less severe. The below 100 extensions market slipped by 13% and the above 100 extensions market suffered a decrease of 17%.
The total market figure for Q1 2009 is the lowest recorded volume since the launch of MZA’s quarterly reporting service. The UK is now on course for its worst annual market performance since 1998 unless volumes dramatically improve in the next quarters.
Cisco led the UK PBX market, with a 17% total market share, while Avaya assumes second position, also with 17%. Meanwhile, Mitel Networks is in close third position with 15% market share this quarter. Avaya led the below 100 extensions market, followed by Nortel. In the above 100 extensions market, Cisco retains its leadership position, followed by Avaya.
IP Extensions Market
In Q1 2009, 48% of extensions deployed at the desktop in the UK were IP, compared to 42% in Q1 2008. IP penetration continued to grow in the below 100 extensions segment, despite the volume of IP extensions declining compared to Q1 2008. It reached 30% in Q1 2009 compared to 22% in Q1 2008. In the above 100 extensions market, there was little change as IP penetration remained just short of 70%. 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%.