Asian server sales revenue, excluding Japan, fell 20 per cent in the first half of this year compared with the same period last year due to pricing competition and IT spending cutbacks, according to a report by International Data Corp.
Server unit shipments increased by 12 per cent over the past year, but income was hit by price cuts.
The average selling price of servers - powerful computers that link computers in a network - dropped from US$18,300 in the first half of last year to $14,000 in the same period this year, said IDC.
Vendors cut prices to attract regional businesses and governments which had suffered budget cuts.
The drive for cheaper computers lifted sales of Windows NT and PC servers, particularly in Taiwan and Australia. High-end and mid-range models built on the Unix platform accounted for server growth in Hong Kong and the mainland.
Australia had the biggest server revenue with 24 per cent, followed by the mainland with 22 per cent; South Korea, 16 per cent; Taiwan, 11 per cent; and Singapore, 6 per cent.