Latin American Server Market Sees Slight Dip in Shipments, Revenue

By Amy Newman (Send Email)
Posted May 29, 2003


The Latin American server market once again saw a dip in both the number of units shipped and revenue for the first quarter of 2003.

The Latin American server market once again saw a dip in both the number of units shipped and server revenue in the first quarter of 2003, according to Gartner Dataquest. The IT research firm attributes much of the decline to slower sales in the IA32 segment.

Server shipments in Latin America declined 2.7 percent in the first quarter of 2003, while server revenue dropped 2.8 percent from the first quarter of 2002, according to Gartner Dataquest.

The IT research firm is attributing much of the decline to slower sales in the IA32 segment.

"Lower levels of investment in technology in Venezuela and most countries in the region affected the Intel server segment of the market which, in turn, affected the entire market. In contrast, Brazil and Mexico showed slight gains, and Argentina experienced a partial recovery," said Lillian Alvarado, senior industry analyst covering servers for Gartner's Computing Platforms Latin America group.

As far as market share, Hewlett-Packard maintained the No. 1 position in server shipments, despite an 8.8 percent decline. IBM held fast to the No. 2 spot, while the No. 3 vendor, Dell, experienced the strongest growth rate in server shipments, growing 39.6 percent. Sun Microsystems also showed strong growth, increasing its market share 38.5 percent.

Latin America Server Vendor Unit Shipment Estimates for 1Q03
(Units)
Company 1Q03 1Q02 Growth
(%)
Shipments Market Share
(%)
Shipments Market Share
(%)
Hewlett-Packard 10,829 28.9 11,875 30.9 -8.8
IBM 6,824 18.2 6,018 15.6 13.4
Dell 6,270 16.7 4,493 11.7 39.6
Alaska 1,062 2.8 1,855 4.8 -42.7
Sun Microsystems 1,044 2.8 754 2.0 38.5
Others 11,436 30.5 13,497 35.1 -15.3
Total Market 37,465 100 38,492 100 -2.7
Source: Gartner Dataquest (May 2003)

From a revenue perspective, IBM led the charge, with 37.4 percent of the market. Hewlett-Packard took the No. 2 spot, followed by Sun Microsystems, Dell, and Itautec, respectively.

Of the top-five, only IBM and Dell saw positive growth in revenue.

Dataquest noted that overall, the RISC server segment experienced an increase of 19.4 percent in the number of units shipped. IBM and Sun Microsystems were responsible for most of these shipments. Servers in the lower end also drove the increase in shipments.

Dataquest also noted that revenue in the RISC server segment increased by 15.6 percent.

"RISC servers have expanded their offerings, particularly in the lower end, and have become more competitive in terms of pricing," said Alvarado.

Latin America Server Vendor Revenue Estimates for 1Q03
(Actual Dollars)
Company 2002 2001 Growth
(%)
Revenue Market Share
(%)
Revenue Market Share
(%)
IBM 116,246 37.4 107,699 33.6 7.9
Hewlett-Packard 89,123 28.6 94,725 29.6 -5.9
Sun Microsystems 27,614 8.9 35,277 11.0 -21.7
Dell 26,931 8.7 20,516 6.4 31.3
Itautec 9,647 3.1 16,764 5.2 -42.5
Others 41,668 13.4 45,265 14.1 -7.9
Total Market 311,229 100 320,246 100 -2.8
Source: Gartner Dataquest (May 2003)

Information for the report was compiled by Dataquest's Computing Platforms Latin America group. The group provides research on key aspects of the dynamic PC, server, and printer hardware markets in Latin America. The focus is on regional and country issues in the top-eight Latin American markets and the Rest of Latin America (ROLA) category, into which Central American and Caribbean countries are grouped.

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