Press Release

Singapore, September 8, 2009 View All Press Releases

Asia Pacific Server Shipments Suffered Another Decline in Second Quarter of 2009

In the second quarter of 2009, Asia Pacific continued its downward trend in server shipments with 17.2 percent year on year decline, with shipments totaling 323,388 units. Server vendor revenue for the second quarter reached US$1.71 billion, down 15 percent compared to the same period a year ago, according to Gartner, Inc.

Generally, constrained server spending remained in the background for most medium and large enterprises in Asia Pacific, although there was growth in units shipped (11 percent) and revenue (4.6 percent) over the previous quarter. The sequential growth came particularly from Australia, benefiting from government’s stimulus program. Australia had slight revenue decline of 2.5 percent year-on-year, while it doubled from 1Q 2009. Gartner expects the government’s stimulus plan will continue to inspire business confidence in Australia and drive further server demand in the second half of 2009.

In other developed countries, weak server demand generally continued to persist when compared to the same quarter of 2008, with the biggest revenue declines recorded in Singapore (-36.8 percent), Hong Kong (-48.3 percent), Taiwan (-33.7 percent) and Korea (-30.7 percent). Similar to Australia, all these countries saw growth over the previous quarter in unit shipment and revenue, except Singapore. A combination of seasonal low server spending in the second quarter and a still-cautious level of business confidence led to further contraction quarter on quarter in server shipments (-5.2 percent) and revenue (-38.4 percent) in Singapore. In China, the peak in purchasing in 2Q08 led to a drop of -2.5 percent year-on-year in the second quarter of 2009.

Shipments of x86 servers declined 16.6 percent year-on-year. At the same time, revenue declined 12.2 percent, accounting for 52 percent of the server market.

Mainframes had another strong quarter with 31.8 percent growth year-on-year, thanks to successes mainly in Australia and the South Korean financial sector.  On the other hand RISC/IA 64 platforms declined at 23 percent over the same period last year.                             

Shipments of blade servers (including x86 blades and RISC/IA-64 blades) represented 12 percent of total units and reported 15.1 percent year-over-year growth during the second quarter of 2009.

Table 1: Asia/Pacific: Server Vendor Revenue Estimates, 2Q 2009 (U.S. Dollars)


2Q 2009 Revenue US$ Million

2Q 2009 Market Share (%)

2Q 2008 Revenue US$ Million

2Q 2008 Market Share (%)

2Q09-2Q08 Growth Rate (%)













Dell Inc.






Sun Microsystems












Other Vendors






Grand Total






Source: Gartner (September 2009)

All major server vendors experienced year-on-year revenue decline, as shown in Table 1, except Dell. HP retained the leading position in server shipments with 29 percent market share with majority of them in the x86 platform.

In revenue terms, IBM maintained its first position by controlling 39 percent of total revenue in 2Q09. Although IBM saw strong growth of mainframes this quarter, its Power Systems continued to suffer under the impact of global downturn and reported a double-digit revenue decline during the quarter.  

Dell increased its share of shipments to 22.9 percent in the second quarter of 2009, however continued to feel the pressure of the weak economy as volume fell 12.3 percent year-on-year. Dell had a better picture in terms of revenue during the quarter as it continued to take advantage of its direct sales model that appeared to help in increasing its product’s selling price.

Because of the uncertainty surrounding the effect of Oracle’s purchase of Sun Microsystems, the latter’s overall server revenue went down 33 percent year-over-year while its revenue share went down 3 points to 9 percent in the second quarter of 2009.

Table 2: Asia/Pacific: Server Vendor Shipment Estimates, 2Q 2009 (Units)


2Q 2009

2Q 2009 Market Share (%)

2Q 2008

2Q 2008 Market Share (%)

2Q09-2Q08 Growth Rate (%)







Dell Inc.


















Sun Microsystems






Other Vendors






Grand Total






Source: Gartner (September 2009)
About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading research and advisory company. The company helps business leaders across all major functions in every industry and enterprise size with the objective insights they need to make the right decisions. Gartner's comprehensive suite of services delivers strategic advice and proven best practices to help clients succeed in their mission-critical priorities. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has more than 13,000 associates serving clients in 11,000 enterprises in 100 countries. For more information, visit

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.