ServersWorldwide Server Market Exhibits Minimal Growth in 2001

Worldwide Server Market Exhibits Minimal Growth in 2001

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Gartner Dataquest this week released statistics revealing a worldwide server market that grew 1.8 percent in 2001 — the lowest annual growth rate in unit shipments seen since 1996.

Worldwide server shipments totaled 4.4 million in 2001; 1.7 million of those units were sold in the United States.

Gartner Dataquest this week released statistics revealing a worldwide server market that grew 1.8 percent in 2001 — the lowest annual growth rate in unit shipments seen since 1996.

Compaq maintained its place in the top spot of the worldwide server market with a 23.3 percent market share. Dell and IBM followed, with 16.1 percent and 15 percent, respectively. Dell and IBM were the only vendors to record positive year-over-year growth, with Dell moving past IBM into the second position with 25.2 percent growth.

“The initial sign of trouble was seen in the first quarter when the economic slowdown began to affect sales of higher-end, midrange systems in the United States and Western Europe,” said Shahin Naftchi, senior analyst covering servers for Gartner Dataquest”s Computing Platform Worldwide program.

“The terrorist attack on September 11 also added to the problem by delaying shipments into and out of the United States during the latter half of the month, a time of year when many vendors expect to record a large portion of their quarterly shipments,” Naftchi added.

Preliminary Worldwide Server Unit Shipment Estimates for 2001
(Units)
Company 2001 2000 Growth
(%)
Shipments Market Share
(%)
Shipments Market Share
(%)
Compaq 1,026,025 23.3 1,068,436 24.7 -4.0
Dell 711,614 16.1 568,410 13.1 25.2
IBM 661,547 15.0 657,979 15.2 0.5
HP 428,104 9.7 440,512 10.2 -2.8
Sun 254,053 5.8 289,231 6.7 -12.2
Others 1,326,072 30.1 1,302,943 30.1 1.8
Total Market 4,407,416 100.0 4,327,511 100.0 1.8

Source: Gartner Dataquest (January 2002)

The U.S. server market exhibited a 9.5 percent decline in 2001. Server shipments were down by 200,000 units, with 1.7 million units shipping in 2001. Dell held the greatest market share in the United States with 23.4 percent; Compaq was close behind with a 22.6 percent share.

“Dell”s focus on one-, two-, and four-way servers placed it in a competitive position as market conditions worsened, making it the only top-five vendor to experience positive growth in both the U.S. and worldwide markets,” said Jeffrey Hewitt, principal analyst for Gartner Dataquest”s Servers Worldwide program.

“Dell”s direct business model and build-to-order model also played a part by enabling low inventory levels and allowing the company to quickly incorporate reductions in component costs into its pricing structures,” Naftchi added.

Preliminary U.S. Server Unit Shipment Estimates for 2001
(Units)
Company 2001 2000 Growth
(%)
Shipments Market Share
(%)
Shipments Market Share
(%)
Dell 399,208 23.4 349,013 18.5 14.4
Compaq 385,164 22.6 482,644 25.6 -20.2
IBM 217,020 12.7 239,612 12.7 -9.4
Sun 121,402 7.1 139,243 7.4 -12.8
HP 99,708 5.9 129,044 6.9 -22.7
Others 480,851 28.2 542,628 28.8 -11.4
Total Market 1,703,353 100.0 1,882,184 100.0 -9.5

Source: Gartner Dataquest (January 2002)

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:
Server Sales Plummet in Western Europe, Says Gartner

Decline in U.S. Server Sales Pulls Down Worldwide Server Market
U.S. Economic Slowdown Impacts Worldwide Server Revenue

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