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Wireless telecoms equipment market: The decline of '09
Updated:2008/11/28 16:16
Many manufacturers are now actively seeking to cut costs. Nokia Siemens is making a further 1,820 staff redundant as part of an ongoing programme whilst battered Canadian kit maker Nortel, already on its knees ,is now culling another 1,300 jobs from an already massively depleted workforce. Meanwhile, Ericsson of Sweden says it expects the equipment market to be "flat" throughout the whole of next year but, strangely, goes on to stress that this gloomy outlook is is not "an official company forecast". Among the analyst community, Kulbinder Garcha of Creidt Suisse says, “Wireless infrastructure investments could decline by as much as 12 per cent in 2009, due to a combination of the emerging market slowdown and financing risks at carriers that account for 25 per cent of global wireless spending.” Elsewhere, Scott Siegler, of the US research house dell'Oro, says the abysmal economic situation will have a major impact in the 3G arena and believes growth next year will “fall Siegler's views chime well with many similar conclusions reached in Macau last week at the GSM's Mobile Asia Congress. I interviewed dozens of industry people at the event and everyone of them was of the opinion that whilst the wireless telecoms sector is better placed than many other industries to weather the economic storm, there is bound to be a downturn. The pessimists say it will be deep and long, perhaps stretching into 2010 or even 2011 whilst the "glass half-full" brigade believe we are in for a short sharp shock but a quick recovery, probably within 12 months. There was also considerable concern as to how western manufacturers are to cope with and respond to the long march being undertaken by the Chinese vendors Huawei and ZTE. Established manufacturers are having a torrid time attempting to compete with the low price equipment being sold by the two companies. The latest figures show that over the course of 2007 Huawei and ZTE between them took US$49 billion worth of sales away from the likes of Ericsson, Nortel, Nokia Siemens and other old-established North American and European manufacturers.
Source:telecomtv ,Electronics Equipment Sales to Dip 2.2% in '09 (2008-12-31) ,Microwave Equipment Market to Grow Exponentially Between 2008 and 2011 (2008-12-22) ,Equipment makers edge towards the end of the line (2008-12-22) ,Chinese telecom equipment suppliers to outdo overseas companies in 3G era (2008-12-17) ,EMEA Network Equipment Spending Increased 4% in 3Q08 (2008-12-17) ,Ericsson, NEC Lead Fast Growing Microwave Equipment Market (2008-12-16) ,BT and Tellabs sign Ethernet access equipment deal (2008-12-11) ,WCDMA Equipment Up 12% in 3Q; Nokia Siemens Leads in Mobile Switch Subsystems (2008-12-11) ,China Unicom to Finish CDMA Network Equipment Delivery (2008-12-9) ,ZTE Says Global Recession Won¨t Damp Overseas Equipment Demand (2008-11-20) ,VoIP Equipment Market Declines 13 Percent Year-over-Year (2008-11-17) ,ZTE Rolls Out Prototype of 10G EPON Equipment (2008-11-14) ,China Mobile Reveals Second Phase TD-SCDMA Equipment Bidding Results (2008-11-14) ,ZTE and Datang Mobile secure major shares in China Mobile second-round TD-SCDMA equipment tender (2008-11-13) ,ZTE Previews Prototype of the World¨s First 10G EPON Equipment (2008-11-12) ,China Unicom Kicks off WCDMA Equipment Bidding Invitation (2008-11-7) ,Tata Selects Ceragon for Microwave Backhaul Equipment (2008-11-4) ,Preliminary results of China Mobile's TD-SCDMA equipment tender leaked (2008-10-28) ,Telecom Equipment "Megamergers" to Drive ATCA Adoption (2008-10-28) ,China Telecom Awards CDMA Equipment Contracts (2008-10-16) |
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