This IDC study presents the 2H04 (July-December) Japan server market shipment analysis and 2005-2009 market size forecasts. The 2H04 Japan server market shrunk 3.7% from the previous year to 333.797 billion yen, marking negative growth for the eighth consecutive term. The growth rate decreased slightly from the -1.8% in 1H04. Meanwhile, shipment increased 16.1% from the previous year to 26,417 units, marking two-digit growth for the third consecutive term.
"In 2H04, the Japan server market's pace of recovery slowed down. The demand for replacement mainframes had decreased. The x86 server market remained buoyant based on shipment. However, as the average unit price continues to fall, it is difficult for revenue to expand. Based on this situation, the market forecasts for 2005 and beyond have been revised. The 2005 Japan server market is expected to shrink 6.7% to 653.554 billion yen. The shipment is expected to increase 4.3% from the previous year," observes Masahiro Nakamura, servers research manager, Japan Servers Research, IDC Japan.