Bob Schechter, CEO Of NMS Communications, kicked off the Connect 2007 conference in China with a global overview of mobile markets. One interesting point he mentioned was the terrible performance of the equipment provider segment despite rapid growth in mobile subscribers.
Here are the market values of some major communications equipment companies as prepared by Goldman Sachs a few weeks ago, i.e. before Ericsson went down 25%:
The rank here is Cisco, Nokia and then RIM! (equipment and service), Ericsson, Motorola, Alcatel-Lucent, etc.
If you look at the stock price performance of major equipment providers, it’s awful. Here are the stock prices of Cisco and Nokia — neither has recovered the value they had the bubble that peaked in 2000. Meanwhile solution companies like RIMM and Apple are far above their 2000 price levels.
Not a pretty picture for the equipment business.