SAN JOSE, Calif, May 7, 2001 Strong growth in Europe and Japan helped the worldwide server industry grow 17.6 percent in the first quarter of 2001, according to preliminary statistics by Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). Worldwide server shipments reached 987,842 units in the first quarter of 2001, up from 839,821 units in the first quarter of 2000.
Compaq remained in the top spot with a 25 percent market share. Dell solidified its hold on the No. 2 position, garnering 16.9 percent of the market. Despite the well-publicized failure of a number of dot-coms, Sun Microsystems was able to keep pace in the market (see Table 1).
"Dell's direct business model and aggressive price positioning put Dell at an advantage, especially during the current U.S. economic slow down," said Shahin Naftchi, senior analyst covering servers and workstations for Gartner Dataquest's Computing Platform Worldwide program.
Table 1
Preliminary Worldwide Server Unit Shipment Estimates for 1Q01 (Units)
| Company |
1Q01 Shipments |
1Q01 Market Share (Percent) |
1Q00 Shipments |
1Q00 Market Share (Percent) |
Growth (Percent) |
| Compaq |
246,644 |
25.0 |
219,689 |
26.2 |
12.3 |
| Dell |
166,937 |
16.9 |
120,035 |
14.3 |
39.1 |
| IBM |
160,825 |
16.3 |
137,142 |
16.3 |
17.3 |
| Hewlett-Packard |
106,200 |
10.8 |
99,511 |
11.8 |
6.7 |
| Sun Microsystems |
69,433 |
7.0 |
58,510 |
7.0 |
18.7 |
| Others |
237,803 |
24.1 |
204,934 |
24.3 |
16.0 |
| Total Market |
987,842 |
100.0 |
839,821 |
100.0 |
17.6 |
Source: Gartner Dataquest (May 2001)
In the U.S. server market, shipments reached 325,472 in the first quarter of 2001, an increase of 2.1 percent over the first quarter of 2000 (see Table 2). Dell jumped into the No. 1 position in the United States based on shipments with a 29.1 percent market share. Compaq slipped to the No. 2 position with a 25.7 percent market share, followed by IBM at No. 3 with 17.9 percent of U.S. server shipments.
"Dell continues to gain ground in the U.S. market as it benefits from its supply chain efficiency advantage and combines it with a strong customer relationship focus," said Jeffrey Hewitt, principal analyst for Gartner Dataquest's Servers Worldwide program. "Compaq lost ground in the United States primarily to the focused attacks of opponents like Dell, while Hewlett-Packard appears to be struggling with some product feature deficiencies at the high end as well as effective sales execution."
Table 2
Preliminary U.S. Server Unit Shipment Estimates for 1Q01 (Units)
| Company |
1Q01 Shipments |
1Q01 Market Share (Percent) |
1Q00 Shipments |
1Q00 Market Share (Percent) |
Growth (Percent) |
| Dell |
94,700 |
29.1 |
72,000 |
22.6 |
31.5 |
| Compaq |
83,806 |
25.7 |
102,376 |
32.1 |
-18.1 |
| IBM |
58,191 |
17.9 |
51,022 |
16.0 |
14.1 |
| Sun Microsystems |
31,929 |
9.8 |
27,689 |
8.7 |
15.3 |
| Hewlett-Packard |
24,958 |
7.7 |
25,952 |
8.1 |
-3.8 |
| Others |
31,888 |
9.8 |
39,632 |
12.5 |
-19.5 |
| Total Market |
325,472 |
100.0 |
318,671 |
100.0 |
2.1 |
Source: Gartner Dataquest (May 2001)
These results are preliminary at this time. Final statistics will be available soon to clients of Gartner Dataquest's Servers Quarterly Statistics program. This program offers a comprehensive, global market information service that analyzes and documents the server industry. To subscribe to these programs, please call 408-468-8000.
Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software and services sectors of the global information technology industry.
Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenues of $859 million. For more information, visit
www.gartner.com.
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