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Asia-Pacific server market continues slide in Q4

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CIOL Bureau
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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.

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The survey by Massachusetts-based International Data Corp found that sales of

high-end multiple-user computers in the region fell 18 per cent 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 US$1.5 billion and

144,581 units during the fourth quarter, compared with US$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.

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China, the biggest market for servers in the region at 33 per cent of

revenue, saw sales dip six per cent 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 US$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.

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