Feature Article

August 28, 2013

Huawei Regains No. 1 Spot in RAN Market, Says ABI Research

ABI Research’s “Mobile Infrastructure RAN Market Shares” data shows that China’s major telecom equipment maker Huawei has regained the #1 spot in radio access network (RAN) market. The market study shows that the Chinese telecom equipment giant increased its share of the mobile infrastructure RAN market by 7.2 percentage points, accounting for 2Q market share of 31.1 percent. As per the ABI study, for the first half of 2013, Huawei reported RAN revenues of 25.6 billion yuan (US $4.18 billion), representing an estimated sequential increase of 37.7 per cent and 14.1 percent year-on-year (YoY) for the second quarter of 2013. The results were posted on Herald online site.

The ABI study shows that the only other vendor reporting a sequential growth in RAN revenue was Alcatel-Lucent, whose RAN equipment revenue increased 3.4 percent quarter over quarter (QoQ) to match average seasonality for Q2. However, it decreased 0.8 percent YoY to reach a value of $1,102 million, representing a RAN market share of 14.3%, a decrease of 0.3 points QoQ and 0.8 percent YoY. The ABI market study indicates that Alcatel-Lucent’s market share position remained unchanged at #4.

In a statement, Nick Marshall, principal analyst at ABI Research, stated, “The Huawei 7.2 points gain in RAN share in the second quarter of 2013 came at the expense of the remaining 6 vendors we track.” He further added, “The share gain was enough to return Huawei to the #1 position (which it held in 2012) with 31.1% and relegate Ericsson to the #2 spot - now trailing Huawei at 23.4% for the quarter.”

Similarly, the ABI research places Nokia Solutions & Networks in #3 spot with 15.9 percent of the RAN market share for Q2 and Samsung in #5 position with 6.7 percent of the RAN market share in the same quarter.

As per the ABI study, the mobile infrastructure RAN revenues grew 5.9 percent sequentially in the second quarter of 2013 to reach almost $7.7 billion, which is 4.8 percent higher than the same quarter a year ago and ahead of average seasonality for the second quarter. The market watcher attributes this growth to strong LTE sales in many regions including North America and Latin America with industry-wide declines in GSM and CDMA sales.

Edited by Ryan Sartor

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