ServersWorldwide Server Market Growth Flattens for First Quarter 2002

Worldwide Server Market Growth Flattens for First Quarter 2002

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The latest server shipment stats from Gartner Dataquest show a server market that remained flat for the first quarter of 2002.

Worldwide server shipments totaled 1.09 million for the first quarter of 2002. This is an increase of 0.6 percent over the first quarter of 2001, according to Gartner Dataquest”s preliminary statistics.

The latest server shipment stats from Gartner Dataquest show a server market that remained flat for the first quarter of 2002. Worldwide server shipments for this period totaled 1.09 million, an increase of .6 percent over the first quarter of 2001. U.S. server shipments for this period increased 7.6 percent.

“The economic downturn and weak global business environment continue to have a great impact on customers” buying behavior,” said Shahin Naftchi, senior analyst covering servers for Gartner Dataquest”s Computing Platform Worldwide program.

“Businesses are not ready to spend on tech products unless it”s absolutely crucial. Customers mostly purchase the least expensive systems to meet their short-term needs and can show a quick return on their IT investment,” Naftchi added.

Compaq remained in the top spot with 22.8 percent of the worldwide server shipments, followed by Dell and IBM, which increased 17.8 percent and 14.3 percent, respectively. In addition, Dell was the only vendor to record positive double-digit year-over-year growth.

Preliminary Worldwide Server Unit Shipment Estimates for 1Q02

(Units)
Company 1Q02 1Q01 Growth
(%)
Shipments Market Share
(%)
Shipments Market Share
(%)
Compaq 248,201 22.8 244,273 22.6 1.6
Dell 193,407 17.8 169,406 15.7 14.2
IBM 155,107 14.3 157,232 14.5 -1.4
HP 93,641 8.6 108,038 10.0 -13.3
Sun 68,655 6.3 69,484 6.4 -1.2
Others 329,418 30.2 333,121 30.8 -1.1
Total Market 1,088,429 100.0 1,081,554 100.0 0.6

Source: Gartner Dataquest (April 2002)

Surprisingly, the U.S. server market fared better than expected in the first quarter of 2002. It experienced a 7.6 percent increase.

Here, Dell led the way, increasing its lead with 26 percent of unit shipments. Compaq followed with 21.4 percent.

“Dell”s build-to-order model allows it to rapidly pass along component price reductions to its customers, thereby improving its price competitiveness,” said Jeffrey Hewitt, principal analyst for Gartner Dataquest”s Servers Worldwide program.

According to Gartner Dataquest analysts, it appears that the U.S. market is starting to stabilize. However, because of the length of server purchasing cycles, market performance for the next two quarters will be crucial in providing a better indication of server market recovery.

Preliminary U.S. Server Unit Shipment Estimates for 1Q02
(Units)
Company 1Q02 1Q01 Growth
(%)
Shipments Market Share
(%)
Shipments Market Share
(%)
Dell 109,091 26.0 93,622 24.0 16.5
Compaq 89,884 21.4 82,262 21.1 9.3
IBM 55,651 13.3 50,916 13.1 9.3
Sun 32,709 7.8 30,663 7.9 6.7
HP 17,100 4.1 24,958 6.4 -31.5
Others 115,187 27.4 107,606 27.5 7.0
Total Market 419,622 100 390,027 100.0 7.6

Source: Gartner Dataquest (April 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:
Dataquest Server Revenue Stats Paint a Rosy Picture for Big Blue
Worldwide Server Market Exhibits Minimal Growth in 2001
Server Sales Plummet in Western Europe, Says Gartner

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