UK analyst MZA has reported that volumes of extensions sold have declined in Q4 2007 compared to Q3 2007, which is in line with expectations as the winter break impacts on activity. However, in comparison to Q4 2006, the UK market recorded its strongest performance yet for this period as extension volumes rose by 16%.
Some impressive growth rates were recorded in the below 100 extensions market, which was also up by 16%. This has been a result of vendors continuing their focus on this area of the market with numerous new products having been launched, including, for example, Cisco Systems’ UC500 product and Samsung’s 7100 solution. Consequently the 31 to 50 and 51 to 100 size segments both record very impressive growth levels compared to Q4 2006 as was expected.
Similar levels of growth were noted in the above 100 size categories, with the heaviest improvement in the 1001+ category. This combined with a lower ratio of add-on extensions to new suggests that a certain degree of Y2K replacement activity took place in the closing months of 2007. This quarter, the 1001+ category was responsible for more than 10% of volumes shipped in the above 100 extensions marketplace.
With an 18% market share, BT remains the UK’s top PBX supplier and Cisco Systems remains the number one manufacturer. Nortel moves into in second position, while Avaya, who was number two in Q3 2007, assumes third position this quarter. The report shows Panasonic as the leading manufacturer in the below 100 extensions category, although it is being closely challenged by Nortel. Meanwhile, in the above 100 extensions market, Cisco Systems retains pole position in Q4 2007.
IP Extensions Market
40% of extensions deployed at the desktop in the UK are IP, compared to 33% in Q4 2006. IP continued to demonstrate a growth rate of more than 40% compared to Q4 2006, although the increase in the above 100 extensions segment slowed to 37%, while growth rates in the below 100 extensions market were more than 50% in comparison to Q4 2006. IP extensions accounted for 20% of all extensions that were sold in the below 100 extensions market, up from 15% in Q4 2006 and 65% of all extensions supplied in the above 100 extensions market were deployed as IP.
Cisco Systems deploys more than 40% of IP extensions in the UK, while Mitel keeps its second position this quarter with a 23% share. In the below 100 extensions market, Cisco Systems becomes market leader for the first time, accounting for just over one-third of all IP extensions supplied to the UK market in this segment and remains the market leader in the above 100 extensions segment with a share of more than 45%.