Ericsson leads the world’s mobile infrastructure market, but it faces stiff competition from Nokia Siemens Networks and Alcatel-Lucent as well as from some Asian vendors, especially a buoyant Huawei.
“As of 1Q 2008, Huawei owned almost 8 percent of the world’s cellular infrastructure market, compared to Ericsson at nearly 29 percent and Nokia Siemens at more than 23 percent,” said ABI Research senior analyst Nadine Manjaro. “But don’t be deceived by that disparity: Huawei is the vendor to watch, given its overall increase in market share over the last six quarters. And squarely in its sights is the number three vendor, Alcatel-Lucent, with a market share just over 13 percent.”
In the second quarter of 2008, Alcatel-Lucent suffered one of its worst quarters since its merger. During the first half of 2008, the company’s wireless infrastructure shipments decreased 63 percent compared to the second half of 2007. Two of its top customers in North America – Sprint and Verizon Wireless – completed EV-DO Rev A deployments, which led to decreased CDMA spending. Sprint alone reduced CAPEX by $1 B compared to 2Q 2007.
“China is the leading wireless market and its top three operators plan to spend close $80 B on infrastructure over the next three years,” continued Manjaro. “This, along with strong growth in India and Africa, might catapult Huawei into the lead within three to five years. At the very least, Ericsson is not likely to be in any kind of ‘comfort zone’ as it tries to face down the growing threat from the muscular Chinese giant.”
A new study from ABI Research, “Mobile Network Vendor SWOT Analysis,” offers analysis of the strengths, weaknesses, opportunities and threats facing a number of leading network infrastructure vendors. It presents an analysis of the companies’ financial results, including investments in research and development, product line diversity, geographic sales distribution and long-term strategies.
The report forms part of the firm’s Mobile Networks Research Service, which also includes other Research Reports, Research Briefs, Market Data, an Online Database, ABI Insights, ABI Vendor Matrices, and analyst inquiry support.