Huawei sales on a high after Q2 boom

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By  Published  September 15, 2006

Huawei has taken over from Alcatel as the company with the highest number of optical network hardware sales in the second quarter of 2006 following a record increase in its sales figures, according to a report from Infonetics Research.

“Huawei is the big story this quarter, with sales up an amazing 83% and a larger foothold in the EMEA [Europe, Middle East and Africa] region,” said Michael Howard, principal analyst of Infonetics Research.

“For the first time in optical network hardware market history, Alcatel is not in first place. Huawei jumped from fourth to first in one quarter, a rare feat. Next quarter may be a different story,” he noted.

Alcatel slipped to second position on the sales leader board, followed by Nortel in third place and by Tellabs in fourth.

Global sales of optical networking equipment jumped 20% in the second quarter to reach US$3.1 billion, according to the firm’s quarterly Optical Network Hardware report.

Whilst Huawei and Alcatel scored the biggest gains, a range of companies showed healthy increases to their figures including Metro Ethernet whose sales made up morethan two-thirds of optical sales.

By region, North America took 35% of sales, while EMEA accounted for 33% of sales and Asia Pacific for 27%.

Sales of carrier-class ethernet switches and routers showed double-digit growth in the second quarter, rising 12% from the previous quarter to $837 million. Annual sales for this market are predicted to grow 113% between 2005 and 2009.

Overall sales of stack page (SP) routers and switches grew 6%, with asynchronous transfer mode (ATM) equipment sales decreasing 24% year-on-year, which Infonetics has attributed to an increased focus by enterprises and service providers on preparing for future traffic increases.

“The service provider multi-service ATM switch segment continues its downward trend, while the IP [internet protocol] and Carrier ethernet switch and router segments continue to climb,” Howard said.

“Carriers are outfitting their data networks to handle the coming IPTV traffic, and outfitting their mobile networks for the expected onslaught of mobile video and data traffic. Carrier ethernet-grade equipment meets these needs,” he stated.

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