APAC server mkt shrinks by 9% in Q2 : IDC

SINGAPORE: The Asia Pacific computer server market, excluding Japan, was down 9 percent in revenue and three percent in unit shipments terms in the second quarter of 2002 compared with the same period last year, IDC said.

The region's server market stood at US$1.35 billion and 133,577 units in the second quarter of this year, compared to US$1.49 billion and 137,101 units in the second quarter of 2001, the research firm said in a statement. IDC expects the Asia Pacific server market to do better in the second half of 2002 provided the United States stays on course for an economic recovery.

The server market was up 5 percent in revenue and 6 percent in units in Q2 over the previous three months. Growth was driven by strong demand in Australia, South Korea, Malaysia, Thailand and New Zealand, IDC said. Australia led the pack with 39 percent sequential and 25 percent annual revenue growth in the second quarter, largely driven by investment by the government and finance sectors. The continuing slowdown of China's server market, which was due to slackening telecommunication and government investment, hit the region hard, IDC said.

The increasing presence of local vendors also added to price pressure in the Chinese server market as seen from a four percent increase in units shipped but a 22 percent revenue decline in the second quarter against the year ago level.

© Reuters