With demand conditions in both the US and Europe already comparatively softer in 2008, the double whammy of September’s financial sector meltdown and sudden crash in the price of copper wiped out any vestige of positive sentiment for a better start to 2009. Whilst up until that point, some suppliers had been offered reassurance that Asia and the Middle East would buffer them to an extent, that position is also now surely weakening.
On a more positive note, migration towards Category 6/Class E further strengthened over the year. Despite the credit crunch, it is anticipated that this demand will be sustained, and that customers already conceptually on this path will not revert to Category 5E. Demand for Class EA remains under par with general expectation, but this market is still considered to be embryonic. We have thus softened our demand outlook for Class EA systems in most countries.
Suppliers will face 2009 with visibility low until at least Q3. Most will be content to end the year having sustained their position.
Regional in-depth analysis in current and archived issues:
Nov 2008 Poland & France
Jul 2008 Russia & Spain
Mar 2008 USA & UK
Nov 2007 India & The Data Centre
Aug 2007 Dubai & Selected European Country Update
Mar 2007 USA & Romania
Oct 2006 France & UK
Jul 2006 Spain & Germany
Mar 2006 USA & Netherlands