economic crisis 2008 causes

economic crisis 2008 causes

Economic Crisis Catches Up to Enterprise VoIP Equipment Sector in 4q ’08

In the fourth quarter of 2008 the Taiwanese enterprise VoIP (Voice over Internet Protocol) industry’s IP phone shipment volume is expected to reach 1.82 million, representing a year-on-year decline of 16.8%. The industry’s enterprise VoIP gateway shipment volume is expected to reach 416,000 ports in the fourth quarter of 2008, growing 30.9% year-on-year.

Looking ahead to the fourth quarter of 2008 and the first quarter of 2009, enterprises have begun cutting back on IT spending due to the economic turmoil. Enterprise VoIP demand in Europe, North America, Japan, and Korea is expected to see slackening growth. In comparison, enterprise VoIP demand in the emerging markets of Eastern Europe and Latin America is projected to continue expanding as these markets are expected to see a more rapid economic rebound than other regions. Taiwanese makers have cultivated the enterprise VoIP sector in emerging markets for some time and are expected to benefit from the demand growth in these markets.

Taiwanese IP phone shipments are expected to be affected by the performance of major branded vendors. Due to the overall economic slump, Cisco and Nortel’s orders have been decreasing over the past few quarters. Avaya’s expanded orders and Alcatel-Lucent’s plan to seek cooperation with Taiwanese OEM/ODM makers are expected to make only limited contributions to Taiwanese IP phone shipment.

Starting in 2007, oil price hikes and the US subprime mortgage crisis have caused the global economy to suffer, leading to considerable pressures on enterprises. It was expected that the enterprise VoIP market would be less affected by the economic turmoil, in light of the cost-saving potential posed by the application of VoIP services. Nevertheless, the continuous worsening of the global economy has caused enterprises to downsize operations and IT spending. As a result, overall enterprise VoIP equipment sales have been on the decline, and the future outlook is far from optimistic.

In the third quarter of 2008, Taiwanese IP phone shipment volume reached 1.95 million units, representing a year-on-year decline of 10.2%; enterprise VoIP gateway shipment volume arrived at 447,500 ports, growing 46.6% year-on-year. Overall Taiwanese enterprise VoIP equipment shipment value dropped 9.3% year-on-year to US$95.2 million in the third quarter. IP phone shipment value declined 13.7% in comparison with the same period last year, while enterprise VoIP gateway shipment value grew 38.9%.

Declines in Taiwanese makers’ shipment volume of IP phones can be ascribed to the decrease of orders by major international vendors on the global economic slump, since Taiwanese IP phone makers mainly engage in OEM/ODM production for these vendors. In the enterprise VoIP gateway segment, Taiwanese makers’ contract production for the major international vendors was at a relatively low level; at the same time, Taiwanese makers landed orders from US SIs (System Integrators) and third-tier branded vendors, while orders from the emerging markets of Eastern Europe and Latin America continued to grow. Therefore, enterprise VoIP gateway shipment grew steadily in the third quarter.

Report on Taiwanese Enterprise VoIP Equipment Industry 4Q 2008
The content of this report is based on primary data obtained through interviews with enterprise VoIP makers. The report finds that Taiwanese IP phone shipment volume declined in the third quarter of 2008 while enterprise VoIP gateway shipment volume grew. The overall Taiwanese enterprise VoIP equipment shipment value decreased as a result. Due to the global economic turmoil, it is expected that Taiwanese IP phone shipment volume will continue to decline in the next two quarters; at the same time, Taiwanese enterprise VoIP gateway shipment volume, though sliding sequentially, will see year-on-year growth.

For more information please visit:
http://www.bharatbook.com/Market-Research-Reports/Report-on-Taiwanese-Enterprise-VoIP-Equipment-Industry-4Q-2008.html

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When will Sen. Reid start those Senate hearings into the financial crisis that precipitated this recession?

Over a year ago, Sen. Reid promised to hold hearings into the factors responsible for the current economic recession. He even set the date, November 20, 2008. Well, here it is, one year later and still no hearings. You would have thought that given the scope, depth and devastation that this recession has caused that the senate would take the time out of the busy schedule to get to the bottom of it so that we can possibly avoid something like this in the future.

Why didn’t he hold this hearing and is he still planning on having one?

I would say that he is planning on holding them on the 8th of NEVER.

It was the Democrats in Congress that were largely responsible for precipitating the recession. They couldn’t very well have hearings going into the recent elections, could they? They lost 2 influential governorships as it was.

And don’t expect those hearings to ever take place. One thing a member of Congress will never do is admit responsibility for something that didn’t go well.

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