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November 16, 2012

Wireless infrastructure equipment revenues decline in Q3: report

Huawei's RAN revenues slumped 15.2% during the quarter

By CBR Staff Writer

Revenues generated from wireless infrastructure equipments reported a 1% decline to $11.3bn during the third quarter (Q3) of 2012 when compared to the second quarter (Q2) of 2012 and a 10.3% drop over the same quarter in 2011.

ABI Research mobile networks principal analyst Nick Marshall said Nokia Siemens share of Radio Access Network (RAN) grew by the largest amount of 4.2 points quarter-over-quarter to 22.4% to narrowly miss Ericsson’s 22.9% at the second spot.

"Samsung’s RAN revenues grew 1.1 points to 5%," Marshall said.

"Both companies attribute their share gains to success with LTE deployments with Nokia Siemens LTE revenues growing 4 times sequentially."

During the quarter, Huawei’s RAN revenues slumped 15.2%, while retaining 24% share in the market, followed by Alcatel-Lucent 14.3%share and ZTE holds the fifth position even after 15% decline in revenues when compared to the same period in 2011.

ABI Research mobile networks practice director Aditya Kaul said there is no question that the RAN market has been squeezed in 2012, although there have been seen improvements in the 3Q, being 8% down from the 14% decrease seen in first quarter.

"Even with 4Q bringing in the traditional Christmas cheer, 2012 will end up 10% down at the very least, which is bound to cause market share shifts especially in the top 3," Kaul said.

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