Third quarter of 2011 global fiber component market contraction

According to Ovum's research, the market for global fiber optic components in the third quarter of 2011 was 0.2% tighter than the previous quarter. The main reason was that the overall economic uncertainty caused the market to weaken.

Neutral Telecom Analyst found that revenue fell to US$1.57 billion in the latest market share report*, which was a recession for two consecutive quarters. Due to the disruption of production caused by the floods in Thailand and the weakness of the entire market, it is expected that there will be a double-digit income decline in the fourth quarter revenue.

According to Daryl Innis, an analyst and market newsman at Ovum, “The overall economic uncertainty has brought about a tightening of the market. Although the fiber market has experienced only a slight recession, the market leader Finisar has continuously grown by 3%, but lost the market on the basis of rolling four seasons. Share."

Inniss expects the market conditions in the first half of 2012 to be weak, as the impact of floods and general economic uncertainty will continue, and strong price pressures will lead to a sharp decline in 2012 prices.

He commented: “We have heard that major players are facing strong price pressures in the current negotiation and negotiations, which will have an effect in 2012. Most of the negotiations and negotiation results are at the low point of the traditional price decline. Positive pricing is The sign of a competitive environment is due to the tightening of supply caused by the floods in Thailand. Lower prices will affect revenue and profits."

At the same time, according to the findings of the report, Fujitsu Optical Components, the top ten fiber component supplier, experienced the strongest growth in the previous quarter, which was a continuous increase of 28% compared with the previous quarter and a 50% increase compared to the same quarter last year. Oclaro also delivered the worst performance at the same time, and its revenue decreased by 6% from the previous quarter.

Innis added: “We have not lost everything; we believe that there will be strong growth between the second and third quarters of 2012. Depressed demand will allow strong performance in the second half of 2012, even if the overall economy is still Full of uncertainty."

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