Cisco Wins Big in India as Chinese Set-top Box Manufacturers Surge,
According to ABI Research
SCOTTSDALE, Ariz. -- February 19, 2013
Cisco won significant standard definition (SD) set-top box business in India
in the quarter ending January 26, 2013. Cisco shipped 1.3 million boxes in the
fourth quarter compared with 850K in the third quarter, with a large portion
of the increase coming from India. Cisco CEO John Chambers remarked that the
company has “been more selective in the business we are taking in terms of
set-top boxes and the lowest margin set-top box business in particular.”
“Cisco has been able to retain attractive margins delivering set-top boxes in
India because the engagements are based on end-to-end services. These
engagements include Cisco headend equipment (notably, cable modem terminations
or CMTS), middleware, and conditional access systems in addition to the
set-top boxes,” comments Sam Rosen, practice director at ABI Research.
Chinese set-top box manufacturers ChangHong and Jiuzhou surged in unit
shipments in the third quarter of 2012; and together grew 66% sequentially to
nearly 5 million units from 3 million in the prior quarter. The tracked market
grew approximately 10% worldwide. ChangHong serves primarily the Asian
markets, while Jiuzhou has more of a mix of domestic and international
“Asian market strength within the set-top box sector is no surprise,”
continues Rosen. “North American and Western European markets are largely flat
as Asian markets grow and African markets are expected to open up in the next
few years. Western manufacturers are using end-to-end strategies, as shown by
Cisco, while Asian manufacturers are operating at lower margins and aiming to
compete on price within low-ARPU Asian markets.”
These findings are part of ABI Research’s Set-Top Box
ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
thousands of decision makers through 70+ research and advisory services. Est.
1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
Christine Gallen, +1-516-624-2542
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