Sharp Drop in Infrastructure Sales

According to Dell'Oro Group, in the first quarter of this year, mobility infrastructure revenues declined 14% to US$6.4 Billion, compared to 4Q02. "While seasonal weakness was expected in the first quarter, the quarter came in slightly below our expectations," said Greg Collins, Director, Dell'Oro Group. "We have similar expectations for the full year 2003, amid reduced capital spending and persistent economic weakness."

In Q103, sales of GSM-based infrastructure declined due to: seasonality, price declines, and capital spending reductions. During the quarter, CDMA revenue growth in Asia was not sufficient to offset weakness in North America. TDMA sales, while a small percentage of the overall mobility infrastructure market, grew on network expansions in the Americas. WCDMA continues to grow, although at a somewhat slower rate than expected, as network operators continue to delay network roll-outs.

Posted to the site on 16th May 2003