Gartner Dataquest Says Asia/Pacific Server Revenue Increased Slightly in Third Quarter of 2002
Decline in Server Revenue in China Countered by Growth in Australia, South Korea, Hong Kong and India
SINGAPORE, November 21, 2002 - Asia/Pacific server revenue totaled $1.12 billion in the third quarter of 2002, a 1.4 percent increase from the same period last year, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).

China continued to rank No. 1 in server revenue in Asia/Pacific, with 29.9 percent market share, but it also experienced a 10.2 percent decline in revenue in the third quarter of 2002 (see Table 1) compared to the third quarter of 2001.

"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 said.

Table 1
Asia/Pacific Server Revenue Estimates by Country, 3Q02 (U.S. Dollars)
Country 3Q02 Revenue 3Q01 Revenue Growth (%) 3Q02-3Q01
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)

Hewlett-Packard and Compaq, as a merged company, ended the quarter with a little more than 29 percent revenue market share in the third quarter of 2002, down from 30 percent market share in the third quarter of 2001 (see Table 2). HP did perform better than the second quarter of this year, 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 said. "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."

IBM retained the No. 1 position in overall revenue with 38 percent market share for the third quarter of 2002, which represented a 1.9 percent decline from the third quarter of 2001. While IBM and HP declined year over year, Sun Microsystems managed to grow revenue 24 percent in the third quarter of 2002. 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."

Table 2
Asia/Pacific Server Market Share Estimates Based on Revenue, 3Q02 (All Servers)
Region 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 100.0 100.0 1.4
Source: Gartner Dataquest (November 2002)

Detailed statistics are available to clients of Gartner Dataquest's Servers Quarterly Statistics program. These programs offer a comprehensive, global market information service that analyzes and documents the server and workstation industries. This report, when available, can be purchased on the Web at www.gartner.com.

Gartner Dataquest is the recognized leader in providing the high technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.

Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients leverage technology to achieve business success. Gartner's businesses consist of Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including more than 1,000 research analysts and consultants, in more than 75 locations worldwide. Fiscal 2002 revenue totaled $907 million. For more information, visit www.gartner.com.

Contact:
Joanna Lobban
Gartner
+61 2 9459 4692
joanna.lobban@gartner.com
Contact:
Tom McCall
Gartner
+1 408 468 8312
tom.mccall@gartner.com