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Sales of videoconferencing and telepresence systems down in Q2

The European economic situation, reductions in public sector spending and a shift towards lower-priced solutions are blamed for the decline.

Market research firm Infonetics Research has released excerpts from its 2nd quarter (2Q12) Enterprise Telepresence and Video Conferencing Equipment report, which analyses markets and vendors by region for dedicated and PBX-based video conferencing and telepresence infrastructure and endpoints (desktop, immersive telepresence, videophones, multi-purpose rooms, and software).

“Economic woes in Europe, declines in public sector spending, and a shift toward lower-priced video conferencing products drove sales of video conferencing and telepresence equipment lower from the year-ago quarter,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

“We view the current revenue slowdown as temporary rather than a fundamental decline in demand, as overall shipments of hardware endpoints are still up by double digits year-over-year, signalling on-going strong demand for videoconferencing capabilities.”

For the 2nd consecutive quarter, the global enterprise video conferencing and telepresence market was down; revenue fell 6% to $644 million in 2Q12. PBX-based systems were the only segment to grow in 2Q12, continuing on a double-digit growth trajectory driven by videophones. Unit shipments of telepresence and desktop systems are down by more than 45% year over year.

While demand for enterprise videoconferencing and telepresence equipment remains strong, the growth rate is slowing: market leader Cisco’s 2Q12 telepresence and video conferencing revenue declined 17% sequentially and market share fell 5 points.

Infonetics’ quarterly Enterprise Telepresence and Video Conferencing Equipment report provides worldwide and regional market size, vendor market share, analysis, and forecasts for dedicated enterprise video equipment, including infrastructure (MCUs, other) and endpoints (desktop, immersive telepresence, multi-purpose room, and software-based endpoints) and PBX-based videophones and software-based video conferencing clients. Vendors tracked include Avaya (Radvision), Cisco, Huawei, Logitech (LifeSize), Polycom, and others.