Ericsson

The Optical and Routing markets show signs of recovery, and tariffs aren’t yet affecting business.

Carrier caution has resulted in underinvestment, and networks are now running “hot” enough to require upgrades and expansion.

Optical spending by Cloud & Colo operators grew 7% worldwide, while spending by Service Providers declined -17%.

Optical sales fall -18% as carrier inventories take longer to deplete than anticipated.

Ex-China, revenue drops as service provider spending continues to stall.

Cloud Spending on Optical Transport Jumps 46% in 4Q23, Traditional Service Provider Spending Remains Weak

The optical market grew 4% – cloud operators continue to invest in transport and vendors are still shipping against large backlogs.

Optical sales slowed due to inventory absorption and macroeconomic concerns, but routing sales continued to grow.

AI demand at TSMC is insufficient to offset weakness across all its other businesses.

North American Cloud operators were the growth engine for optical and packet transport sales.

Good wireline results from Nokia and Calix but Mobile capex is tepid

North American Cloud operators were the growth engine for optical and packet transport sales.

North American Cloud operators were the growth engine for optical and packet transport sales, supply chains remained strained.

North American Cloud operators were the growth engine for optical and packet transport sales, supply chains remained strained.

North American Cloud operators were again the growth engine for optical and packet transport sales

First-quarter 2022 worldwide optical hardware spending increased 2.5% YoY, while packet gained 2%. North America led growth in both categories.

First-quarter 2022 North American optical and packet sales continue to rebound despite supply-chain constraints. Excluding NA, both hardware categories declined in 1Q22.

Fourth-quarter 2021 worldwide optical hardware spending increased 3.5% YoY. Declines centered in APAC for the second consecutive quarter, while all other regions grew YoY.

Optical forecasts were reduced by $1.1B worldwide in 2025 due to a shift of coherent optics into router-based DCO’s.

First-quarter 2021 worldwide optical hardware spending was down slightly YoY, Chinese optical hardware spending was down significantly.