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Mixed Results for VideoConferencing

videoconferencingIDC released its Q2 2016 data for videoconferencing systems and highlighted 2.0% growth on the Q1 data, but a 0.4% drop in revenue on an annual basis. However, worldwide enterprise video equipment revenue in Q2 2016 was $505 million, up from $496 million a year ago. Overall units were up to 104,209 in Q2, an increase of 2.8% on last quarter, and 5.2% compared to Q2 last year.

From a market segment perspective:

  • Multi-codec telepresence equipment revenue ($31.0 million) was up 29.9% quarter over quarter, but down 2.8% year over year. Unit shipments were up 23.8% sequentially and 9.8% year over year.
  • Room-based videoconferencing system revenue ($352.5 million) decreased 2.0% quarter over quarter but increased 3.8% year over year. Unit shipments increased 4.2% quarter over quarter and 13.2% year over year.
  • Personal videoconferencing systems revenue ($38.7 million) – including executive desktop systems – decreased 7.4% quarter over quarter and declined 35.8% year over year. Likewise, unit shipments were down 2.3% quarter over quarter and 16.0% year over year.
  • Video infrastructure equipment revenue ($82.9 million) – including MCUs and other video-related infrastructure – increased 18.5% quarter over quarter and 9.9% year over year.

Regional results in 2Q16 were as follows:

  • North America revenue decreased both quarter over quarter (-4.8%) and year over year (-3.1%).
  • Latin America revenue decreased both quarter over quarter (-12.1%) and year over year (-14.0%).
  • Europe, Middle East & Africa (EMEA) revenue decreased both quarter over quarter (-1.2%) and year over year (-15.2%).
  • Asia/Pacific revenue increased 14.2% quarter over quarter and 19.5% year over year.

Looking at vendors:

  • Cisco’s results showed decreases in both quarter over quarter (-0.6%) and year over year (-3.2%) revenue in 2Q16. Cisco remained the leader in enterprise videoconferencing equipment with a 44.3% share of the worldwide market.
  • Polycom’s results showed decreases in both quarter over quarter (-3.6%) and year over year (-20.8%) revenue in 2Q16. Polycom ranked second in enterprise videoconferencing equipment with a 19.7% share of the worldwide market.
  • Huawei’s results showed increases in both quarter over quarter (30.1%) and year over year (41.6%) revenue in 2Q16. Huawei ranked third with a 14.2% share of the worldwide enterprise videoconferencing equipment market.