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

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.

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, with China again taking the No. 1 slot in server revenue for the region, and IBM coming in as the top vendor.

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)
Country	3Q02 Revenue	3Q01 Revenue	Growth (%)
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 (%)	3Q01 Market Share (%)	Growth (%)
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.