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To: Lee who wrote (64692)	9/10/1998 12:17:00 PM
From: MichaelW	Respond to of 176387

Re: If we just listen to the media or CNBC If you listen to the propaganda machine. MW

To: Lee who wrote (64692)	9/10/1998 12:48:00 PM
From: Mohan Marette	Respond to of 176387

Server market in Asia Pacific-IDC reports-First half took a hit to the tune of $400 million. Hi Lee: Here is a bit of useful information from IDC.Do notice DELL is not included as their share of the market is probably insignificant currently but growing nonetheless as most us will know. Source:International Data Corp. =============================================== Economic Crisis Trims Over US$400 Million from Regional Server Market, Finds IDC FRAMINGHAM, Mass., Sept. 9, 1998 - Asia/Pacific (excluding Japan) server revenue dropped 20 percent in the first half of 1998 when compared to the same period last year, according to preliminary data released today by International Data Corporation. The primary factor restraining growth throughout Asia/Pacific was the regional economic crisis, which has caused many regional businesses and governments to reduce or cancel spending on information technology products. Price erosion had already been a primary trend in the server marketplace; however, the currency crisis acted as a catalyst for greater reductions as price sensitivity heightened. While revenue dropped 20 percent annually, server unit shipments increased 12 percent during the same period. In the process, the average server selling price in the region dropped from US$ 18,300 in 1H 1997 to under US$ 14,000 in 1H 1998. PC servers and Windows NT benefited from the greater price sensitivity as both segments of the market outpaced overall server growth considerably to increase their share of regional server revenue. "The downturn in the regional server market could have been much more severe if not for the relative strength of Australia, the PRC and Taiwan, three of the four largest server markets in the region," said Avneesh Saxena, senior server analyst at IDC Asia/Pacific. "While conditions in Southeast Asia were particularly harsh, these markets have always represented small server markets and as a result were unable to drag regional growth down further." Competitively, the market downturn contributed to market consolidation as most of the market leaders increased share from the same period of 1997. The top five vendors' share of total server revenue increased from 75 percent in 1H 1997 to 82 percent in 1H 1998. IBM maintained its leadership position in the overall server market with nearly 29 percent market share, up from 25 percent during the same period of 1997. The market leader's competitive position was strengthened by its dominance of the high-end (>US$ 1.0 M) server market. Hewlett-Packard trailed IBM with slightly more than 20 percent market share, but produced the slightest annual decline among the top five vendors. Compaq's acquisition of Digital brought the combined company to the third-place position in the first half of the year with almost 20 percent market share. Sun Microsystems and NCR rounded out the top five vendor positions with market shares of 11 percent and two percent, respectively. Market Highlights As anticipated, the worst market conditions in the first half of the year centered in Southeast Asia and Korea. The worst market declines were recorded in Indonesia, Thailand and Malaysia with annual server revenue decreases ranging from 75 percent in Indonesia to 53 percent in Malaysia. Nevertheless, Korea had the greatest influence on the market's poor results with a 52 percent drop in revenue due to its prominent position in the regional server market. Korea previously ranked as the largest server market in the region accounting for over 25 percent of server revenue in 1H 1997, but its share plummeted in the first half of 1998 to under 16 percent. In contrast, conditions in Australia and Greater China (the PRC, Hong Kong and Taiwan) remained mostly positive in the first half. Collectively, these four markets accounted for nearly 62 percent of the regional server market and increased server revenue over 11 percent from the year-earlier period. Primary growth factors by country varied. In Australia and Taiwan, strong PC server and Windows NT growth fueled server gains. Conversely, high-end and midrange servers based on the Unix operating system supported server growth in Hong Kong and the PRC.