Network Equipment Market Off 12% Last Year
By Carlo Longino, Wed May 19 19:30:00 GMT 2004

A slow global economy and 3G delays held the market back last year, though Siemens is seeing the benefit of WCDMA spending.

Total network equipment sales slumped to $40 billion in 2003, down from $45 billion the year before. Ericsson remains the market leader with 26 percent, down 3 percent from 2002. Nokia stayed ahead of Siemens with 14 percent, the Germany company followed by Motorola and Nortel with Lucent and Alcatel coming in sixth and seventh.

Siemens gained one point of share, taking its total to 13 percent, on the strengths of its WCDMA sales. In that segment alone, Siemens has 23 percent of the market, and Nokia's WCDMA position is also stronger than its overall share. The top seven vendors announced a total of 267 contracts last year, 64 percent of which were GSM, 14 percent CDMA and 14 percent WCDMA.

Gartner analyst Jason Chapman, who wrote the report, says two things surprised him: that the market only declined 12 percent, and that emerging vendors like Huawei, LG and Panasonic didn't make much of an impact, despite the noise they made.