This is a typical reaction to the recent downturn in economic fortunes that impact the cautious small businesses earlier and more severely than the larger enterprises. On a consecutive quarter basis Q2 2011 fell against Q1 2011, which in turn was also down when compared to Q4 2010.
The most mature PBX markets of Western Europe and North America suffered declines of 6% and 4% respectively in Q2 2011 compared to Q2 2010, although Asia Pacific recorded the highest shipment figures in recent times and grew 10% against Q2 2010. The emerging markets experienced mixed fortunes in Q2 2011, with Latin America falling by 9% year-on-year, but Eastern Europe and Middle East and Africa each growing by 4% and both driven by good growth in the Above 100 Extensions market.
When compared to the previous quarter (Q1 2011), only Asia Pacific recorded an increase in shipment volumes in Q2 2011, with all the other regions registering declines of between 1% and 7%.
Cisco maintained the position it took in the previous quarter to lead the world PBX market, growing market share from 12% in Q2 2010 to 15%, ahead of Avaya who remained in second position with a 14% market share. NEC improved its share marginally in Q2 2011, growing from 10% in Q2 2010 to 11% market share in Q2 2011, although NEC did take the lead in the Below 100 Extensions sector with a 13% market share, overtaking Panasonic who dropped into second position. In the Above 100 Extensions market, Cisco was the clear market leader with a 29% market share, followed by Avaya.
World IP Extensions Market
North America continued to lead the market for IP deployments, with around 1.7 million extensions deployed to the desktop this quarter, compared to 1.4 million in Western Europe. This means that North America has now achieved an IP extension penetration rate of 62% into total extensions, by far the highest rate globally.
This compares to a 42% penetration rate in Western Europe, still ahead of the global average of 35%, which itself is up from 31% in the same period of last year. Eastern Europe continues to be the region with the lowest IP deployment to the desktop as a proportion of extensions sold, well behind the penetration rates seen in Asia Pacific, Middle East and Africa and Latin America.
Overall, the IP extensions market grew by 12% compared to Q2 2010, well above the flat volumes seen in the total extensions market. The Below 100 IP Extensions and the Above 100 IP Extensions markets increased by 11% and 12% respectively in Q2 2011, and in both instances, increases in the IP extensions market far outweighed the growth seen in the total market.
Cisco maintained its leadership of the Global IP extensions market with a 38% market share, followed by Avaya at 20% and Mitel Networks with 9% market share.