ServersDecline in U.S. Server Sales Pulls Down Worldwide Server Market

Decline in U.S. Server Sales Pulls Down Worldwide Server Market

ServerWatch content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.




Gartner Dataquest”s latest crop of server sales statistics for the second quarter of 2001 reveals that compared to the second quarter of 2000, worldwide sales remained virtually flat and U.S. sales declined more than 11 percent.

Dataquest cites slowed sales of higher-end, midrange systems in the United States and Western Europe as the cause of the marginal 0.7 percent growth.

Gartner Dataquest’s latest crop of server sales statistics for the second quarter of 2001 reveals that compared to the second quarter of 2000, worldwide sales remained virtually flat and U.S. sales declined more than 11 percent.

In mid-June IDC published a report on factory server revenue that discussed similar findings.

According to Dataquest, Compaq remained the top-selling vendor, with 26.7 percent of the worldwide market. Dell and IBM follow, having garnered 18.0 percent and 16.7 percent of the market, respectively. Although the market share positions of the top-five worldwide vendors have not changed, only Dell and IBM exhibited positive year-over-year growth, 28 percent and 10 percent, respectively.

“The economic slowdown predominantly affected high-end enterprise systems. Customers began to cut back or defer purchases of expensive high-end server models and focused more on lower-priced systems,” said Shahin Naftchi, senior analyst covering servers for Gartner Dataquest”s Computing Platform Worldwide program, in a prepared statement.

Preliminary Worldwide Server Unit Shipment Estimates for 2Q01
(Units)
Company 2Q01 2Q00 Growth
(%)
Shipments Market Share
(%)
Shipments Market Share
(%)
Compaq 259,770 26.7 273,147 28.3 -4.9
Dell 175,218 18.0 136,577 14.1 28.3
IBM 162,596 16.7 147,285 15.2 10.4
HP 103,291 10.6 115,580 12.0 -10.6
Sun 62,288 6.4 73,635 7.6 -15.4
Others 210,621 21.6 220,555 22.8 -4.5
Total Market 973,784 100.0 966,779 100.0 0.7

Source: Gartner Dataquest (August 2001)

The U.S. server market shipped 347,045 units in 2Q01. This is an 11 percent decline from the 390,951 units sold in 2Q00. Dell and Compaq share the lead in the U.S. market, with each owning 28.5 percent of the market. IBM, Sun, and Hewlett-Packard follow, with market shares of 17.1 percent, 7.9 percent, and 7.7 percent, respectively.

IBM and Dell are the only vendors in the top five to experience growth in both the U.S. and worldwide markets.

“IBM”s recent aggressive attacks on HP and Sun customers began to bear fruit for the company, while HP”s continuing channel conflicts may have helped IBM”s attacks become more successful,” said Jeffrey Hewitt, principal analyst for Gartner Dataquest”s Servers Worldwide program.

“Sun”s UltraSPARC III issues and current poor reputation for service and support hastened its decline and this shows that its incredible momentum from 2000 has dissolved for now,” Hewitt added.

Preliminary U.S. Server Unit Shipment Estimates for 2Q01
(Units)
Company 2Q01 2Q00 Growth
(%)
Shipments Market Share
(%)
Shipments Market Share
(%)
Dell 99,000 28.5 86,125 22.0 14.9
Compaq 98,968 28.5 133,520 34.2 -25.9
IBM 59,244 17.1 52,036 13.3 13.9
Sun 27,344 7.9 34,508 8.8 -20.8
HP 26,770 7.7 35,973 9.2 -25.6
Others 35,719 10.4 48,789 12.5 -26.8
Total Market 347,045 100.0 390,951 100.0 -11.2

Source: Gartner Dataquest (August 2001)

Final statistics will be available shortly to clients of Gartner Dataquest”s Servers Quarterly Statistics program. More information about these programs can be obtained at +1 408 468 8000.

Related Stories:
U.S. Economic Slowdown Impacts Worldwide Server Revenue
Dataquest Reports Continued Growth in Worldwide Server Market
Server Shipments for 2000 Surpass Those in 1999

Get the Free Newsletter!

Subscribe to Daily Tech Insider for top news, trends & analysis

Latest Posts

Related Stories