The Economic Times Monday, February 25, 2002
Asia-Pacific server market continues slide in Q4 REUTERS HONG KONG: The Asia-Pacific (ex-Japan) market for computer servers fell by 18 per cent in the fourth quarter of 2001 with weak economic conditions plaguing sales even in the comparatively healthy China market, according to preliminary data released on Monday by a research firm. The survey by Massachusetts-based International Data Corp found that sales of high-end multiple-user computers in the region fell 18 percent on a revenue basis and 3.5 per cent by unit shipments compared with the same quarter a year earlier. IDC predicted a recovery for server sales in the region would slightly trail that foreseen in the United States, with the Asia-Pacific region expected to see improvement in the fourth quarter of 2002. The total market for servers in the region stood at $1.5 billion and 144,581 units during the fourth quarter, compared with $1.8 billion and 149,875 units a year earlier, marking the third consecutive quarterly decline in the region, according to IDC's preliminary numbers. China, the biggest market for servers in the region at 33 percent of revenue, saw sales dip six percent on a year-over-year basis in the quarter to US$495 million, IDC said. For 2002, IDC predicts server sales in the region will increase by about 3.5 per cent to $5.9 billion from a preliminary total of $5.7 billion in 2001. In China, IDC predicted server sales would grow by 16 per cent in 2002 to $2.1 billion from $1.8 billion in 2001. Across the region, "worsening economic conditions led to a contraction in demand that forced server vendors to take more aggressive measures to garner share," said Avneesh Saxena, director of computing services at IDC. He said demand from governments in most major Asian markets prevented even worse conditions for server vendors in the region. Copyright © 2001 Times Internet Limited. All rights reserved.
