Videoconferencing equipment revenue drops in Q1 reflecting seasonal changes

video conference

Overall videoconferencing equipment revenue decreased 21.1 percent quarter over quarter in the first three months of 2016, IDC said. However, on an annual basis, revenue increased 2.3 percent.

Total worldwide enterprise video equipment revenue was over $495 million in the first quarter, down from about $628 million in the fourth quarter of 2015.

The total number of videoconferencing units sold was 101,391, down 8 percent sequentially, but increased 9.9 percent compared to 1Q15.

Rich Costello, senior analyst,¬†Enterprise Communications Infrastructure, at IDC said: “The quarterly declines are mainly due to the usual seasonality, with the first quarter pretty much always the weakest of the year, and the fourth quarter usually the strongest. So the market is not doing as bad as the quarterly numbers might indicate.”

Segmental performance

Multi-codec telepresence equipment revenue was $23.9 million, down 44.4 percent quarter over quarter, but increased 27.4 percent year over year. Unit shipments were down 47.1 percent quarter over quarter, but increased 48.8 percent annually.

Room-based videoconferencing system revenue was $359.6 million, decreased 15.4 percent quarter over quarter, but increased 9.8 percent year over year. Unit shipments decreased 8.8 percent quarter over quarter, but increased 10.4 percent year over year.

Personal videoconferencing systems revenue including executive desktop systems, $41.8 million, down both 7.9 percent compared to 4Q15 and 5.7 percent year over year. Unit shipments were down 4.3 percent quarter over quarter, but increased 8.2 percent compared to 1Q15.

Regionally, revenue from North America decreased 17.4 percent quarter over quarter, but increased 17.8 percent year over year. Latin America revenue decreased both 30.6 percent quarter over quarter and 26.4 percent year over year.

Europe, Middle East & Africa (EMEA) revenue was down both 26.3 percent quarter over quarter and 12.6 percent year over year. Asia/Pacific revenue slipped 19.2% quarter-over-quarter, but increased 6.3% year-over-year.

Key vendors

Cisco’s 1Q16 results showed a 20.9 percent revenue decrease quarter over quarter, but a 9 percent year-over-year revenue increase. Cisco remained the leader in enterprise videoconferencing equipment with a 45.4 percent share of the worldwide market.

Polycom’s revenue dropped both quarter over quarter (down 14.6 percent) and year over year (declining 16.2 percent) in 1Q16. Polycom ranked second in enterprise videoconferencing equipment with a 20.8 percent share of the worldwide market.

Huawei’s quarter-over-quarter revenue decreased 46.8 percent, but increased 3.7 percent year over year in 1Q16. Huawei ranked third with an 11.2 percent share of the worldwide enterprise videoconferencing market.