Gartner Dataquest: Asia/Pacific Server Revenue Increases Slightly in 3Q02

Gartner Dataquest: Asia/Pacific Server Revenue Increases Slightly in 3Q02

November 26, 2002

Server revenue in the Asia/Pacific region totaled $1.12 billion in the third quarter of 2002, according to the latest research from Gartner Dataquest.

This represents a 1.4 percent increase from the same period last year the research firm noted.

China was again ranked No. 1 in server revenue for the region, capturing 29.9 percent market share. It also experienced a 10.2 percent decline in revenue in the third quarter of 2002 compared to the third quarter of 2001.

Growth in Australia, South Korea, Hong Kong, and India, however, was enough to offset declines in in China.

"Despite the server revenue decline in China, growth in mature markets such as Australia and Korea, coupled with significant emerging market increases, such as in Indonesia and India, resulted in positive revenue growth for the region," said Matthew Boon, principal analyst for Gartner Dataquest's Asia/Pacific Computing Platforms group.

"While conditions remain difficult, the fact that the region registered growth in the face of continuing global uncertainty indicates its relative resilience to adverse outside influences," Boon added.

Asia/Pacific Server Revenue Estimates by Country, 3Q02 (U.S. Dollars)
3Q02 Revenue
3Q01 Revenue
Australia 136,724,463 121,269,758 12.7
China 334,655,147 372,659,431 -10.2
Hong Kong 60,655,480 52,416,711 15.7
India 71,077,529 56,999,093 24.7
Indonesia 26,443,386 17,602,107 50.2
Korea 273,539,296 233,544,383 17.1
Malaysia 24,914,046 30,407,586 -18.1
New Zealand 20,703,847 21,893,881 -5.4
Philippines 9,151,606 6,225,151 47.0
Rest of Asia/Pacific 14,638,524 22,211,844 -34.1
Singapore 38,604,537 50,527,851 -23.6
Taiwan 75,853,551 87,968,492 -13.8
Thailand 29,053,429 25,434,113 14.2
Vietnam 4,703,996 6,202,250 -24.2
Total 1,120,718,836 1,105,362,651 1.4
Source: Gartner Dataquest (November 2002)

In terms of units sold, the merged Hewlett-Packard and Compaq ended the quarter with a little more than 29 percent revenue market share in the third quarter of 2002. While this is 30 percent less than the market share HP garnered in the third quarter of 2001, it represents an increase over HP's second quarter performance, when its market share was 28 percent.

"While it is still in the beginning stages of the merger, the new HP in Asia/Pacific must surely be heartened by this apparent slowing in decline when compared to earlier this year," Boon noted. "Indications are that Asia/Pacific corporations are getting used to the new HP and are now feeling less nervous about an IT world without Compaq. There was always going to be some customer crossover, and this now appears to have sorted itself out."

In terms of overall revenue, IBM retained the No. 1 position with its capture of 38 percent market share. This represents a 1.9 percent decline from the third quarter of last.

In contrast to IBM's and HP's decline in share, Sun Microsystems managed to grow revenue 24 percent in the third quarter. Sun's market share increased to 14.6 percent.

"Sun Microsystems' growth rate is a significant achievement in today's market," Boon said. "Sun achieved huge growth in markets such as Korea and India, while it also registered strong growth in Australia, New Zealand and Singapore."

Asia/Pacific Server Market Share Estimates
Company 3Q02
Market Share
Market Share
IBM 38.0 39.2 -1.9
Hewlett-Packard 29.3 30.4 -2.4
Sun Microsystems 14.6 11.9 23.9
Dell Computer 3.8 3.5 10.6
LangChao Electronics 1.4 1.5 -4.2
Unisys 1.3 1.0 29.6
Others 11.6 12.5 -4.8
Total Market 100.0 100.0 1.4
Source: Gartner Dataquest (November 2002)

Additional data is available to clients of Gartner Dataquest's Servers Quarterly Statistics program, a program that offers organizations global market information service that analyzes and documents the server and workstation industries.