In an information technology industry that worldwide was in hot water in 2001, China?s domestic computer server market made gains. The three Chinese manufacturers considered the backbone of Chinese server manufacturers -- Langchao, Legend and Dawning -- performed well despite a global server market that began to slide in the second quarter, except for China.
According to research on China?s server market in 2001 by the Center of Information Industry Development [a government-authorized agency under the Ministry of Information Industry], sales volume and sales value increased by 23.7 percent and 17.5 percent respectively. The server sale volume of the year was 220,000 and sales value over 13 billion yuan [US$1.56 billion].
Foreign server manufacturers also invested more in the Chinese market. In a new competitive environment, domestic server manufacturers represented by Langchao, Legend and Dawning made every effort to become stronger and more mature, improving and adjusting their products, technology and marketing strategies. Domestic server sales volume in 2001 amounted to 82,000 sets, increased by 20.6 percent than previous year.
In the PC server market, domestic products accounted for 81,638 sets in sales volume and 1.93 billion yuan [US$233 million] in sales value, which is 40.5 percent and 34.6 percent of the whole domestic market respectively. These figures indicate that domestic servers made some breakthrough into the low-end market to set up a solid foundation for high-end products in the future.
Dawning in 2001 made its debut as the only domestic RISC server brand competing with foreign products, with sales of 130 million yuan [US$15.7 million]. This was despite the difficulty of entering the RISC server market where key technologies are monopolized by foreign manufacturers, unlike the PC server market where technologies are comparatively shared.
In the face of stiffer competition, the three Chinese manufacturers -- which accounted for more than 70 percent of sales of domestic servers -- introduced new development strategies to redefine their market orientation. Langchao launched its "nearby server expert" strategy and integrated its products, services and means, paying more attention to its "favorable fields and industries." Legend launched its "No 1" project to develop more technologies and convert its old ideas to a "client first" concept in relation to products, solutions and services. Dawning got down to earth, working more on PC servers and market demand and also implementing an integrated strategy instead of aiming only at high-end giant computers and super servers.
Langchao?s goal is locked on becoming leader of China?s domestic server market in 2003; Legend aims to take the lead at the fourth quarter in 2002; Dawning looks to be the "first brand of Chinese server." According to a new investment report, Legend and Langchao are just behind IBM and HP in the domestic market, and no one can ignore Dawning for its high speed growth rate and powerful technology.
The server market has been a battlefield for manufacturers since 2002. Although below their foreign counterparts, domestic server manufacturers are destined to make group progress in the future.
(光明日报 [Guangming Daily], translated by Li Liangdu for china.org.cn, April 24, 2002)
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