Asian crisis hurts server shipment revenues

Asian crisis hurts server shipment revenues

In the first half of this year, revenue from server shipments in the Asia-Pacific region dropped 20 per cent year-on-year as the region's organisations and governments cut back on IT spending, according to a report released this week by IDC Asia-Pacific.

However, the only bright spots were Australia, where shipments grew 7.3 per cent, China, up 13.1 per cent year-on-year, and Taiwan, which saw its shipment value blossom by 26.3 per cent, IDC A/P said.

The total value of shipments for the first half was down a total of $US400 million compared with the same period in 1997, the company said.

Although on a unit basis, shipments for the first half rose 12 per cent year-on-year, the average selling price of servers in the region fell 12 per cent over the same period.

The price declines dragged down with the total revenue figure, the market researcher said. The average selling price of a server in the region in the first half of this year was $US14,000 compared with $US18,000 for the same period a year earlier.

IBM led the pack of vendors, shipping just over $US458 million in the half for a total share of 29 per cent of the market. IBM's shipments fell 8.8 per cent when compared with the same period in 1997, IDC A/P said.

For number-two ranked Hewlett-Packard, shipments for the half were valued at $US326 million, down year-on-year by 3.4 per cent.

HP was followed by Compaq, which, when combined with the value of shipments of its recent acquisition of Digital, held a near 20 per cent share, according to IDC.

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