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Latin America Server Market Yields Mixed Bag for Second Quarter

Written By
thumbnail Amy Newman
Amy Newman
Jul 20, 2010
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Following the trend of the U.S. and worldwide server markets, growth rates for Latin America server shipments slipped in the second quarter of 2001, declining into the single digits. Server revenue in the region continued its unbounded growth, however, and increased nearly 21 percent, according to the latest report from Gartner Dataquest.

Top growth spots were once again occupied by Compaq and IBM, with Compaq extending its lead based on shipments, and IBM leading the pack based on revenue.

Following the trend of the U.S. and worldwide server markets, growth rates for Latin America server shipments slipped in the second quarter of 2001, declining into the single digits. Server revenue in the region continued its unbounded growth, however, and increased nearly 21 percent, according to the latest report from Gartner Dataquest.

“With a more diversified position in the server arena, IBM performed well in all three processor segments of the market,” said Lillian Alvarado, senior industry analyst covering servers for Gartner Dataquest”s Computing Platforms Latin America group.

“Compaq”s success can also be seen, as 23 percent of sub-$5,000 Intel architecture servers in the region were supplied by the Houston-based firm,” Alvarado added.

Dell exhibited the strongest growth, both in shipment and revenue, with increases of 88.6 percent and 252.3 percent, respectively. Dataquest attributes this to a substantial increase in Dell”s sales in the $10,000 to $15,000 price range during the second quarter.

“Looking forward, it is clear that understanding and servicing small business computing solution requirements is a must for server vendors industry in Latin America. Approximately 65 percent of the companies in this region fall under the small business category, strongly suggesting that the future growth of the server industry in Latin America relies on this market segment,” commented Luis Anavitarte, vice president and research director for Gartner Dataquest”s Latin America group.

Latin America Server Vendor Unit Shipment Estimates for 2Q01
(Units)
Company 2Q01 2Q00 Growth
(%)
Shipments Market Share
(%)
Shipments Market Share
(%)
Compaq 10,516 23.9 7,717 18.8 36.3
IBM 6,546 14.9 5,744 14.0 14.0
Dell 4,051 9.2 2,148 5.2 88.6
HP 3,102 7.0 2,855 7.0 8.7
Itautec 1,872 4.3 1,038 2.5 80.3
Sun 1,567 3.6 1,149 2.8 36.4
Others 16,389 37.2 20,410 49.7 -19.7
Total Market 44,043 100.0 41,061 100.0 7.3

Source: Gartner Dataquest (August 2001)

Latin America Server Vendor Revenue Estimates for 2Q01
(Thousands of Dollars)
Company 2Q01 2Q00 Growth
(%)
Revenue Market Share
(%)
Revenue Market Share
(%)
IBM $144,868 33.5 $134,096 37.4 8.0
Compaq $69,611 16.1 $55,804 15.6 24.7
Sun $65,426 15.1 $51,073 14.3 28.1
HP $62,928 14.5 $30,680 8.6 105.1
Dell $17,690 4.1 $5,022 1.4 252.3
Itautec $12,992 3.0 $5,659 1.6 129.6
Others $59,367 13.7 $76,005 21.2 -21.9
Total Market $432,882 100.0 $358,340 100.0 20.8

Source: Gartner Dataquest (August 2001)

In terms of growth by country, Brazil continued to hold the lead, as it represented 38 percent of all server shipments to the region. Mexico again came in second, with 20 percent of the market. Argentina trailed in third, with 11 percent of server shipments arriving there.

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:
Latin America Server Shipments Grow 12 Percent in First Quarter
Decline in U.S. Server Sales Pulls Down Worldwide Server Market
U.S. Economic Slowdown Impacts Worldwide Server Revenue

thumbnail Amy Newman

Amy Newman is a B2B technology writer and editor with more than 15 years of experience following and analyzing IT infrastructure trends. She co-authored "Practical Virtualization Solutions: Virtualization from the Trenches," published by Prentice Hall Pearson Education in 2009.

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