Volumes declined by 23% in the Below 100 extensions market, while the Above 100 extensions market registered a fall of 27%. Whereas previously the larger declines had been most intensely felt in the Below 100 extensions market, this time the drops were more pronounced in the larger market segments.
In the Above 100 extensions segment, the heaviest loss of 65% came in the 1001+ extensions segment, while the other market segments in this area decreased by between 16% and 22% compared to Q2 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 32% compared to Q2 2008. The other segments fell by between 5% and 28%.
These declines have been exacerbated by the fact that Q2 2008 was a strong quarter for the UK market and is a reminder of how quickly the market deteriorated during 2008. Quarter over quarter (Q2 2009 versus Q1 2009) there was some improvement. The Below 100 extensions market rose by 11% and the Above 100 extensions market saw a rise of 2%.
Avaya led the UK PBX market in Q2 2009, with a 19% total market share, while Cisco slipped into second position, with 16%. Meanwhile, Mitel Networks is in close third position also with a 16% market share this quarter. Avaya led the Below 100 extensions market, followed by Mitel Networks. In the Above 100 extensions market, Cisco retained its leadership position, followed by Avaya.
Since publication of our Q2 2009 data, Avaya has been announced as the winning bidder in the auction for Nortel’s enterprise communications business. The acquisition of Nortel’s enterprise business will potentially significantly strengthen Avaya’s UK market position and channel relationships. In Q2 2009 Nortel and Avaya combined represented 31% of total PBX/IP PBX extensions shipped in the UK.
IP Extensions Market
In Q2 2009, 48% of extensions deployed at the desktop in the UK were IP, compared to 46% in Q2 2008. IP penetration continued to grow in the Below 100 extensions segment, despite the volume of IP extensions declining compared to Q2 2008. It reached 29% in Q2 2009 compared to 24% in Q2 2008. In the Above 100 extensions market, there was a marginal change as IP penetration rose from 71% in Q2 2008 to 73% in Q2 2009. Cisco represented just under a third of IP extensions in the UK, while Mitel Networks kept its second position this quarter with a share of just over 20%.