Japan Server 2004-2008 Forecast Update and 1H04 Vendor Shares: 2004 Midyear Review

This IDC study analyzes the shipments of the Japanese server market in 1H04 (January–June) and forecasts the market size between 2004 and 2008. The factory revenue of the server market in 1H04 showed year-on-year decrease of 1.9% to 366.06 billion yen. Although this is the seventh straight decline, the growth rate is recovering after hitting the bottom in 1H03. The shipments grew by 15.0% to 243,439 units and achieved two-digit growth for two consecutive periods. The shipments showed year-on-year growth in all product segments.

"The server demand is clearly improving, and that the demand for replacement of RISC server and mainframe has recovered in 1H04. On the other hand, the decrease in the average selling value of x86 server accelerated. The x86 server market maintains healthy growth in terms of shipments, but its factory revenue was sluggish. Based on these factors, IDC revised the market forecast for 2004 upward. The server market in 2004 will show year-on-year decrease of 2.8% in factory revenue to 699.373 billion yen. The shipments are expected to increase by 14.1%," observes Masahiro Nakamura, research manager, Japan Servers, IDC Japan.