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News >> Technology >>
Asia-Pacific server revenue up 9% Q1
By siliconindia staff writer
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Thursday, 16 June 2005, 19:30 IST
MUMBAI: The Asia-pacific (excluding Japan) region experienced the strongest growth rate compared to other regions in the first quarter of 2005, according to Gartner, Inc.
Total server vendor revenue in Asia-Pacific totaled $1.37 billion in the first quarter, a 8.9 percent increase from the same period last year. China contributed 40 percent of the total revenue in the region.
"Due to the optimistic economic outlook for most countries in the region, the momentum of the markets in Asia-Pacific began moving positively in 2004 and has continued through the first quarter of 2005," said Annie Chung, principal analyst for enterprise systems research in Asia/Pacific for Gartner. "Telecommunications and government sectors were the main drivers for server demand this quarter."
China, South Korea and Australia were the top three markets in Asia/Pacific, accounting for more than 60 percent of the total server revenue within the region in the first quarter (see Table 1). China remained the biggest server purchasing market, achieving a 26.8 percent yearly growth, while South Korea and Australia came second and third respectively.
"In South Korea, heated competition among the vendors resulted in lower average selling prices," Chung said.
Negative growth in most South Asia countries, including Indonesia, Malaysia, Philippines and Thailand, during the first quarter was caused by a strong rebound in the first quarter of 2004, when companies already did most of their spending. x86 servers were the main revenue contributors in these countries. Server revenue in Singapore continued to grow steadily at two percent, with the public sector being the key market followed by banking and telecommunications industries.
"The decline of vendor revenue in different markets across the region was due to fewer high-end servers were being sold; a drop in average selling price and most units were sold at the mid-low range servers," Chung added. "In some markets, the variations of exchange rate might also have played a role in final vendor revenue."
IBM, Hewlett-Packard and Sun Microsystems continued to be the market leaders, although Sun lost market share in the region (see Table 2). Dell followed closely behind these companies with yearly growth of 54.6 percent in revenue. The company did especially well in Taiwan and Malaysia, where more than 100 percent growth was reported.