Peter Dinham
Friday, 15 May 2009 10:55
IT Industry -
Strategy
Page 1 of 2
Chinese telecommunications giant Huawei had a huge increase in revenues to $790 million for the first three months of this year on the back of the race to build 3G mobile networks in China.
Ovum, in its latest report on the global optical
networking (ON) equipment market, says vendors worldwide in the first
quarter this year recorded $3.6 billion in revenues, led by strength in
the Asia Pacific region, most notably a revenue increase for Huawei of
more than 40% and a 20+% increase for Chinese mobile phone maker, ZTE.
According to Ovum, the first quarter revenues of $3.6 billion were down
15% sequentially and down 8% compared with the first quarter last year.
Vice president ON at Ovum, Dana Cooperson, said the result “marks the
second time in two quarters that the ON market has shrunk compared with
the year-ago quarter, but given the global financial meltdown the
situation could have been much worse.”
However, Cooperson says spending in Asia-Pacific was surprisingly
strong, and Ovum did not see the seasonal decline it normally expected
in China - “for example, as the race to build 3G mobile networks and
support them with transport capacity obliterated any seasonality or
macroeconomic downturn factors.
“Huawei, posting a remarkable $790 million in revenue to lead the
market for the quarter, benefited from China’s 3G race, along with
teledensity growth in India, a strong and stable currency, and
comparatively little exposure to the cool North American market, while
Alcatel-Lucent suffered from much of the opposite.”
According to Cooperson, of the top ten vendors, none posted both
sequential and year-over-year revenue gains, reflecting slowing
spending in much of the world.
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