Latin America Server Shipments Grow 12 Percent in First Quarter

Server shipment statistics released today by Gartner Dataquest reveal a Latin America server market that is alive and kicking.

In the first quarter of 2001, server shipments in the region totaled 42,965 units, an 11.5 percent increase over the first quarter of 2000.

Server shipment statistics released today by Gartner Dataquest reveal a Latin America server market that is alive and kicking.

In terms of growth by nation, Brazil maintained its place in the No. 1 spot, with 15,025 servers shipping in the first quarter of 2001; server shipments in the country grew 18.7 percent in the first quarter of 2001. Gartner Dataquest analysts attribute some of this growth to server demands in Brazil''s financial sector.

Mexico was the No. 2 country in the region with 9,230 units shipped, and Argentina ranked No. 3, with shipments of 4,704 units.

Combined, Brazil and Mexico account for 56.5 percent of all server shipments in Latin America.

Among the top-tier vendors, Itautec demonstrated the strongest growth, exhibiting 79 percent growth in the number of shipments in the first quarter of 2001. Dell and Compaq also experienced strong growth rates of 58 percent and 24 percent, respectively.

The entry-level server segment also did well during the first quarter of 2001. Intel architecture server shipments increased 14 percent, although other types of servers decreased their shipments.

"Sub-$1,000 top-tier-branded vendor servers are in the Latin America horizon, and small businesses can hardly wait," said Luis Anavitarte, vice president and research director for Gartner Dataquest''s Latin American research, in a prepared statement

"Inevitably, a price war will take place within these systems, particularly among Dell and Compaq in the next few quarters, as the region renews low-end server equipment. But, for maximizing profits under such aggressive pricing strategy, vendors must add value to the box through a solution package tailored for that market segment," Anavitarte added.

Latin America Server Vendor Unit Shipment Estimates for 1Q01
Company 1Q01 1Q00 Growth
Shipments Market Share
Shipments Market Share
Compaq 9,693 22.6 7,850 20.4 23.5
IBM 6,047 14.1 5,563 14.4 8.7
HP 4,921 11.5 4,837 12.5 1.7
Dell 3,010 7.0 1,908 4.9 57.8
Itautec 1,659 3.9 926 2.4 79.2
Others 17,635 41.0 17,463 45.3 1.0
Total Market 42,965 100.0 38,547 100.0 11.5
Source: Gartner Dataquest (May 2001)

This information was compiled by Gartner Dataquest''s Computing Platforms Latin America group. This group provides research on key aspects of the dynamic PC, server and printer hardware markets in Latin America. It focuses on regional and country issues in the top eight Latin American markets and the Rest of Latin America category, where Central American and Caribbean countries are grouped.

Related Stories:
Dataquest Reports Continued Growth in Worldwide Server Market
Latest IDC Survey Reveals a Still-Growing Server Market

This article was originally published on May 24, 2001
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