IP Phone Sales Up 53% YoY Print E-mail
Written by Adam Gosling   
Monday, 21 August 2006
While Gartner warns that companies considering large scale IP phone acquisition programs need to temper their desires, Synergy Research has released statistics that show a sequential 28 per cent increase in unit shipments for the second Quarter.
The worldwide Enterprise IP Telephony market (more than just phones) was up 30.4 year-over-year driven strongly by IP Phone sales.

Synergy says global revenue for enterprise VoIP was a shade under US$1.2 billion with the third quarter expected to reach US$1.3 billion on the way to a US$5 billion year.

For the first time, the APAC region outperformed the U.S. and EMEA regions in Enterprise Telephony sales.

Cisco, Nortel, Avaya and Alcatel secured the bulk of the sales, with the top three hitting double digit Quarter on Quarter increases. Cisco and Avaya both shipped more than 1 million IP phones in the Quarter.

Cisco had a tremendous quarter enabling them to grab the number one market share ranking in worldwide IP Telephony, said Synergy.

"IP Phone growth drove the quarter," said Ryan Olsen, Analyst at Synergy Research Group. "This significant growth was recognised by all of the large players. A highlight for the quarter was the historic benchmark that was achieved by Cisco who shipped over one-million IP Phones as well as Avaya who shipped over one-million Converged Lines."

It was a banner Quarter for the Asia Pac sales reps as the region out performed both the EMEA and U.S. regions. Enterprise IP Telephony sales were up 39 per cent year-over-year in AsiaPac compared to 31 percent in the U.S. and 25 percent in the EMEA.

With sales of IP phones contributing such a huge part of the increase by growing 23.8 per cent between first and second Quarter (53 per cent over the Q2 2005 results) it is interesting to note the warning Gartner recently had for IP phone buyers.

The highly respected analyst group warned corporate buyers to show a little restraint buying expensive IP phones with built in LCD screens.

The researcher points out that users rarely access the phone display for any useful purpose and reminds them that the real benefits of IP Telephony are accrued when the phone is integrated with the PC that already sits on the user's desktop.

As unified communications systems develop and click to call becomes better integrated Gartner says the LCD display will become redundant.

Cisco leads the enterprise IP telephony market with 25.3 percent, just a hair above rival Avaya's 25.2 percent market share. Cisco also had the largest quarter-to-quarter growth at 29 percent, and shipped over 1 million IP phones for the second quarter.

The two tables below shows the second quarter changes in market share for the major players world wide (Table 1) compared to the Asia Pacific region (Table 2).



Table 1
Q2 2006 WW Enterprise IP Telephony Market Shares
  Q-Q Growth %
Cisco
+ 29.0
Avaya + 14.7
Nortel
+ 20.6
Alcatel
+ 9.3
Mitel
+ 2.7

Table 2
Q2 2006 APAC Enterprise IP Telephony Market Shares
  Q-Q Growth %
Avaya
- 6.3
Alcatel
+ 11.1
Cisco
+ 40.6
NEC
+ 226.3
Nortel
+ 78.1


www.srgresearch.com

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