Asia-Pacific continues to be the darling for IBM

Big Blue financial results following the path of other big multi-nationals in experiencing strong growth in the region

The Asia-Pacific is proving a gold mine for IBM with the region again achieving the highest revenue growth as the company posted its 2010 second quarter results.

Overall, IBM reported a revenue increase of two per cent to $US23.7 billion and a net income of $US3.4 billion, up from $3.1 billion in the corresponding period a year earlier.

Revenues in the Asia-Pacific increased nine per cent during the April to June quarter to reach $US5.4 billion.

In contrast, the Europe, Middle East and Africa (EMEA) region slid six per cent to $US7.4 billion and the Americas increased three per cent to hit $10.2 billion.

Like many other multinational IT corporations, growth markets including the so-called BRIC countries (Brazil, Russia, India and China), continued to rise for IBM while traditionally strong economies faltered.

For the six months to 30 June, revenue from growth markets were as large as that for the Euro zone countries for the first time.

The regional performance has been reflected in other companies’ results including HP and Dell, while others like SAP have gone on record as stating a clear objective to secure greater regional market share.

IBM does not break down its results into country-specific details. In terms of business segments, IBM recorded the following year on year results for the second quarter of 2010:

  • Business Analytics revenue up 14 per cent;
  • Global services revenue rose two per cent;
  • Outsourcing services revenue decreased 19 per cent;
  • Transaction services revenue fell three per cent;
  • Software revenues including for operating systems and middleware rose two per cent (Lotus revenues, however, decreased by six per cent);
  • System x revenues increased 30 per cent but Power Systems fell 10 per cent and System z dropped 24 per cent;
  • Storage revenues increased five per cent;
  • and Global Financing revenues decreased four per cent.

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