Asia's Q1 server sales up

Asia's Q1 server sales up

SINGAPORE: Computer server sales in the Asia Pacific increased 7 percent to US$ 1.12 billion in the first quarter from a year ago but the SARS outbreak could hit demand in the June quarter, an industry monitor said on Monday.

Technology research house Gartner Inc. said regional economies severely affected by the Severe Acute Respiratory Syndrome (SARS) epidemic could see weaker demand in the second quarter.

"A number of key markets, including Singapore, Hong Kong, Taiwan and China face challenging business conditions in the second quarter of 2003," said Matthew Boon, regional vice president for hardware and systems research.

"Thus we should expect that the second quarter could negate much of the first quarter gains.

"Many large organizations, particularly in the tourism, hospitality and services industries are looking closely at delaying capital expenditure programs."

Sales in Taiwan, now the SARS hotspot, rose 5.5 percent to 81.06 million shares. --AFP