The server market in the Asia-Pacific region, excluding Japan, has continued its third-quarter tumble as revenues fell 18 per cent or $US300 million in the fourth quarter of 2001 compared to the same period in 2000, IDC Asia-Pacific said on Monday.
According to IDC figures, the server market stood at $1.5 billion with 144,581 units shipped in Q4 2001, compared to $1.8 billion and 149,875 units in Q4 2000. The decline was due to poor economic conditions, which were exacerbated by the events of September 11 and the ensuing Afghan war, IDC said.
Worsening economic conditions forced vendors to take more aggressive measures to garner share, said Avneesh Saxena, director of computing systems at IDC Asia-Pacific. "The overall decline could have been much worse had it not been for the initiatives and demand from government in most major markets," he said.
Even the usually resilient Chinese market was affected, declining by 6 per cent in revenue year-on-year in the last quarter of 2001, marking the first decline in China's server market in two years, said IDC. However, China continued to lead in its share of the server market in Asia-Pacific as it increased its overall share (by revenue) to 33 per cent, IDC said.
Although demand for servers fell year-on-year, the market in Q4 2001 did better than the previous quarter, as year-end demand helped drive growth in most countries, IDC said.
Looking ahead, the region is expected to rebound as the price war among vendors has begun to wind down, and the US economy is expected to recover later this year, said IDC. The Asia-Pacific economies are expected to also gain ground by the end of 2002 to early 2003, IDC said.