Input costs have fallen for phone and video conference equipment, enabling suppliers to lower their prices
Los Angeles, CA (PRWEB) March 27, 2014
Phone and video conferencing equipment has a buyer power score of 4.0 out of 5, which reflects favorable price trends and low market risks. According to IBISWorld analyst Andrew Yang, this higher score indicates that buyers will have significant leverage in negotiating lower prices and package deals where additional features or products are included.
Phone and video conferencing equipment is in the decline stage of the product life cycle because there are many substitutes that buyers can use to enable video conferencing. Increasingly, companies are turning toward web-based video conferencing solutions (web conferencing) that do not require dedicated phone and video conference equipment, says Yang. Instead, buyers can use mobile devices, laptops and desktop computers to perform video conferencing. As a result, although market share concentration and product specialization is high, revenue for phone and video conferencing equipment has declined.
Pricing trends have also been favorable for buyers. Input costs for phone and video conferencing equipment have fallen steadily in the past eight years and suppliers have passed on these cost savings onto buyers. As a result prices for phone and video conference equipment have fallen in the three years to 2013. Again, the availability of substitutes prevent suppliers from raising prices significantly because buyers will turn to web-based solutions, which tend to be much less expensive.
Market risks are low overall for phone and video conference equipment. Most companies are large diversified public companies that sell a variety of products, lowering the possibility of bankruptcy. Supply chain risks are low. Phone and video conferencing equipment is made out of circuit boards, semiconductors, circuits and electronic components. These materials are widely available from suppliers all over the world, reducing the supply chain risks. In this context, buyers have many opportunities to negotiate lower prices as well as package deals that include installation and maintenance and repair services. Declining revenue also pressures suppliers to lower prices to keep their customers. For more information, visit IBISWorld’s Phone & Video Conference Equipment procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of phone and video conferencing equipment. Phone and video conference equipment enable audio and video communication in real time between offices, meeting and conference rooms. Phone and video conference equipment includes endpoint devices used to capture and deliver audio and video data in the room as well as the infrastructure that compresses, manages and transmits the data between rooms. Endpoint devices include television screens, video cameras, phones and speakers. Infrastructure devices include codecs, multipoint control units (MCUs) and servers. This report excludes web conferencing systems and software, as well as smartphones, tablets, laptops and desktop computers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.