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Oz Server Revenue Surges – But Tablet Sales Hit PC Market

Server shipments in Australia grew only 2.9 percent year-on-year, but vendor revenue surged 37.3 percent, on the back of mainframe investment, according to new figures from market researcher Gartner.

The researcher says Hewlett-Packard continues to dominate the Asia-Pacific server market based on unit shipments with 29.7 percent share, growing year-on-year at 11.7 percent in this quarter, driven solely by its x86 based ProLiant server. IBM, however, still leads by revenue due to strong mainframe sales.

Gartner has also published a worldwide PC market forecast showing that media tablets are expected to displace around 10 percent of PC units by 2014.

The researcher has cut its global PC shipments forecast for 2010 and 2011 as consumers rein in spending and interest grows in tablet devices such as Apple’s iPad. As a result, Gartner’s forecast is down by 3.6 percent.

PC makers are now expected to ship 352.4 million units by the end of 2010, 14.3 percent more than last year but around 11 million less than Gartner forecast in September.

The researcher had earlier projected a growth rate of 17.9 percent for this year. Next year, PC unit sales are expected to reach 409 million units, up 15.9 percent year-over-year, down from an earlier projection of 18.1 percent.

Gartner says the results reflect marked reductions in expected near-term unit growth based on expectations of weaker consumer demand – due in no small part to growing user interest in media tablets such as the iPad.

Apple’s iPad triggered strong interest in tablets, which share more design elements with mobile devices such as smartphones, and less with PCs and laptops. Major PC makers, led by Dell and H-P have rolled out their own versions of the device.

Gartner expects tablet unit sales to total 19.5 million this year and to nearly triple to 54.8 million in 2011. The group projects tablet unit sales to surpass 208 million in 2014.

It said the economic slowdown is also a factor for weaker PC sales. The industry also faces longer-term challenges, as consumers turn to alternative devices, such as tablets and smart-phones.

In emerging markets, Gartner says consumers are likely to “simply leapfrog PCs and move directly to alternative devices in the coming years rather than following the traditional pattern of purchasing a PC as their first computing device.”

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