The videoconferencing and telepresence market has hit a temporary rut, with global sales falling for a second consecutive quarter.
According to Infonetics Research, global sales fell six per cent sequentially to $644m (£396m) in the second quarter of 2012, with market leader Cisco suffering a 17 per cent decline.
This is after sales fell 22 per cent in Q1 to $687m, from a record high the previous quarter.
Not so long ago, videoconferencing was being touted as the IT market's golden-haired child.
The market watcher blamed the fall on Europe's economic woes, declines in public sector spending and a shift towards lower-priced videoconferencing products, but saw it as just a short-term blip.
Infonetics' research looks at sales of dedicated and PBX-based videoconferencing and telepresence infrastructure and end points (desktop, immersive telepresence, videophones, multi-purpose rooms and software).
The market watcher expects the market to surpass $5bn by 2014.
"We view the current revenue slowdown as temporary rather than a fundamental decline in demand, as overall shipments of hardware end points are still up by double digits year over year, signaling ongoing strong demand for videoconferencing capabilities," said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics.
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