Gartner Dataquest Says Worldwide Server Market Grew Nearly 18 Percent in the First Quarter of 2001
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.
CONTACT:
Christy Pettey
Gartner
408-468-8312
christy.pettey@gartner.com