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Business | May 13, 2011

Pace surpasses Motorola to take set-top box lead

Pace plc of the United Kingdom in 2010 became the world’s No. 1 seller of set-top boxes (STBs) in terms of unit shipments for the first time ever on an annual basis, surpassing Motorola Inc. of the United States, IHS research suggests.
Pace’s STB shipments surged by 21.1% in 2010 to 20.7 million units, up from 17.1 million in 2009. Motorola’s shipments rose only 4.2% to 19 million units, up from 18.2 million in 2009.

"Pace’s strong unit shipment growth in 2010 mostly was driven by huge growth in cable shipments to both North and South America. Pace has been voraciously taking market share from U.S. incumbents with high-volume deals such as selling boxes to Comcast. The company also fostered new big-volume customers like Net Servicios in Brazil", said Tom Morrod, head of TV technology.

Despite Pace’s strong shipment growth, Motorola managed to hold on to the lead in STB revenue. Motorola’s STB revenue amounted to USD 2.4 billion in 2010, down 9.5% from USD 2.7 billion in 2009. Pace’s revenue rose to $1.9 billion, up 8.1% from USD 1.7 billion in 2009.

U.S. STB brands Motorola and Cisco Systems Inc. have average sales prices (ASP) around 60% higher than the European vendors Pace and Technicolor. However, for all four vendors, ASPs declined by between 2-12% in 2010.

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