IDC: Asian server market down 7 percent in Q1

Sales of servers in the Asia-Pacific (excluding Japan) region for the first quarter of 2002 were 7 percent lower by revenue and 5 percent lower by units than in the same quarter of 2001, according to research company IDC.

First-quarter server sales reached US$1.3 billion and 125,621 units compared to $1.4 billion and 131,547 units last year, IDC said.

All of the countries in the region bar Singapore saw server sales fall during the surveyed period, with declines of over 20 percent in Malaysia and Hong Kong, and a drop of more than 10 percent in Indonesia. All the other markets -- including the usually buoyant China market -- saw server sales fall by up to 10 percent.

China is the region's largest server market, with revenue for the first quarter 2002 of just under $400 million, 31 percent of the region's total server sales. Following China are South Korea, with sales of just over $300 million, and Australia, the only other country to top $100 million in server revenue for the first quarter 2002.

Taiwan, Singapore, India and Hong Kong are the next four biggest server markets, according to IDC.

Singapore, which has seen strong decline in server sales, picked up recently due to higher demand for servers in the life sciences market and the semiconductor industry, according to IDC.

Despite continuing year-on-year revenue declines, the Asia-Pacific server market is showing signs of bottoming out, according to IDC. Server demand appears to be stabilizing and server shipments will pick up in the second half of 2002, assuming there is no setback to the revival of U.S. and global economies by the middle of 2002, IDC said.

China, Korea, Australia, India and Taiwan will continue to offer the most opportunity in the region for servers, IDC said.

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