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SERVER MARKET DEPRESSED BY ASIAN ECONOMY.

The Asian economic crisis depressed revenues in the computer server industry in the second quarter of 1998, according to research by market analyst Dataquest. It says that worldwide server revenues were down 11.2% at $9.8bn compared to the second quarter of 1997. Unsurprisingly, the Asia-Pacific region was the worst affected, enduring a 34% decline in server revenues compared with the corresponding period last year. The Japanese server market, negatively influenced by the depreciation of its currency the yen, also experienced a fall in revenues of 31.6%. Western Europe was the only region to show any increase in revenues, with sales increasing 7% in the second quarter of 1998 on the same period in 1997. In the US, which accounts for the greatest portion of the server market worldwide, revenues were down 5.9% at $3.9bn. In terms of market share, IBM Corp held on to its leadership position despite falling revenues. In the second quarter of 1998, IBM server sales accounted for 26.6% of the total market, down from 28.2% in the same period last year, and its revenues were $2.6bn, down from $3.1bn. Hewlett-Packard Co, meanwhile, moved into second position with a 14.4% slice of the market, up from 11.5%, on revenues that rose from $1.3bn to $1.4bn. That relegated Compaq/Digital into third place despite the fact that the company increased its market share to 13.4%, up from 12.9%. The biggest gain was seen by Sun Microsystems, which grew its market share from 7.6% to 11.7%, on revenues up from $844m in the second quarter of 1997 to $1.2bn in the corresponding period in 1998, an increase of 37%. Figures for Europe's largest computer manufacturer, Siemens Nixdorf, were largely unchanged. The company's revenues rose from $448m to $456m, giving it a market share of 4.6%.
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Publication:Computergram International
Geographic Code:1USA
Date:Dec 18, 1998
Words:315
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