China Carries the Ball for Asian Computer Server Market

The Chinese computer server market grew strongly in the June quarter as other key regional markets plummeted by double digit percentages due to the US-led economic slowdown, an industry monitor said Tuesday.

As a result, the Asia-Pacific server market outside Japan grew by only seven percent in the three months to June compared to a year earlier and four percent compared to the March quarter, said Dataquest Inc, a unit of technology research firm Gartner Inc.

"We have seen the US-led malaise impact Europe; clearly we are now seeing this impact some of the countries in the Asia-Pacific region more than others," said Dataquest regional server programme manager Matthew Boon.

"Unfortunately, the US market continues to flounder and business confidence continues to wane across the region, even some of the region's growth powerhouses have experienced a significant slowing," Boon said.

The Chinese mainland market rose by 26 percent from a year earlier and 12 percent from the previous quarter. Although the growth in Chinese mainland slowed, it enabled the region to stay in positive territory, Dataquest said in a report.

Hong Kong's market grew 25 percent in the June quarter from a year earlier and only two percent from the March quarter.

In contrast, the South Korean market contracted by seven percent year-on-year and 10 percent from the March quarter. The Taiwan server market shrank 28 percent and 11 percent for the year and quarter respectively.

Singapore, which has fallen into recession, saw its server market plunge 23 percent from a year earlier and 16 percent compared to the March quarter.

India registered an eight percent growth year-on-year, but fell 13 percent quarter-on-quarter.

Australia had flat growth on the year but expanded 22 percent from the previous quarter.

Compaq remained the leader with a 21 percent market share, followed by IBM, Hewlett-Packard and Dell Computer, according to Dataquest.








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