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Slight Dip In Asia's Server Revenues

Server revenues in the Asia-Pacific region declined 5.7 percent in the second quarter of 2002 (Q202) from US$1.14 billion to US$1.09 billion when compared to the corresponding quarter in 2001, said Gartner.

According to Gartner, the news was not all bad with the region registering almost four percent growth quarter-on-quarter, growing from US$1.05 billion in Q102 to US$1.09 billion in Q202.

In addition, there were still bright spots, said Matthew Boon, principal analyst for Gartner's Asia-Pacific Computing Platforms group.

"Australia, Korea and Singapore all registered year-over-year growth during the Q202. The problem was in China which saw a decline in excess of 13 percent when compared to the Q201. This, coupled with declines in Taiwan and Hong Kong, it was enough to drag the region into negative territory."

Vendor Performance
The second quarter, which is traditionally strong for Sun, saw it take the second position in terms of overall server revenue in Asia Pacific, up from third place in Q102 and the Q201. It recorded the strongest overall growth across the region with an 18 percent year-on-year increase and 26 percent quarter-on-quarter rise in its revenues.

IBM maintained its overall number one position in the Asia-Pacific region with an estimated 36 percent of server revenue. The second quarter, which is traditionally strong for Sun, saw it record the strongest overall growth across the region with a 20 percent year-over-year revenue increase.

The second quarter also saw the merger of Compaq and Hewlett-Packard, under the Hewlett-Packard banner. While the merged entity accounted for 28 percent, this was down from 32 percent in the corresponding period of 2001 and 30 percent in the preceding Q202.

"Clearly the new entity has faced challenges in the second quarter as management, products and business get bedded down," said Boon. "The new company had a particularly tough time in China this quarter, which itself showed signs of weakness. However, the real litmus test will be in Q3 as we see much more of the structures and processes in place."

Table 1: Asia-Pacific Server Vendor Revenue by Country
(US$Millions)


Q2-2002Q1-2002Q2-2001Q201-Q202
Growth %
Q102-Q202
Growth %
Australia$177,009,310 $125,878,292 $173,857,995 1.8%40.6%
China$332,682,339 $332,001,046 $386,535,148 -13.9%0.2%
Hong Kong$54,605,634 $51,106,689 $67,238,291 -18.8%6.8%
India$50,325,847 $54,588,400 $50,524,424 -0.4%-7.8%
Singapore$51,368,735 $59,115,012 $40,581,191 26.6%-13.1%
Taiwan$72,255,200 $76,243,210 $91,097,776 -20.7%-5.2%
New Zealand$17,338,678 $18,294,073 $21,362,334 -18.8%-5.2%
Korea$238,327,267 $229,219,438 $235,471,786 1.2%4.0%
Rest of Asia Pacific$97,507,645 $104,029,082 90,116,744-6.3%8.2%
Source: Gartner Dataquest, August 2002

Table 2: Asia/Pacific Server Market Share Estimates for 2Q02 based on Revenue (All Servers)

Vendor2Q02 Market Share (%)2Q01 Market Share (%)Year-Over-Year Growth (%)
IBM36325
Hewlett-Packard2832-17
Sun Microsystems191520
Dell Computer433
LangChao
Electronics
22-5
Legend11-11
Others1015-30
Total100100-5.7
Source: Gartner Dataquest, August 2002