Gartner Dataquest Says Worldwide Server Market Grew 3.1 Percent in Third Quarter of 2002
U.S. Server Market Showed Third Consecutive Quarter of Positive Growth
SAN JOSE, Calif., October 28, 2002 — The worldwide server market grew 3.1 percent in the third quarter of 2002, as worldwide server shipments totaled 1.1 million, up from 1.07 million units in the third quarter of 2001, according to preliminary statistics by Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). While the industry did grow, Gartner Dataquest analysts said the relatively poor performance of the market for the same quarter last year, due primarily to the terrorist attacks of Sept. 11, must be considered when judging the change.

"The performance of the worldwide server market in the third quarter of 2002 should be interpreted with caution because of the issues that existed in the same quarter one year ago," said Shahin Naftchi, senior analyst covering servers for Gartner Dataquest's Computing Platform Worldwide program. "The server market still looks cloudy with the possibility of war in the Middle East further aggravating economic uncertainty, and continued constraints on IT spending which make it hard to be optimistic about real recovery of the worldwide server market this year."

Hewlett-Packard remained in the top spot in the worldwide rankings with 30 percent of the market. Dell remained in the No.2 spot, but continued to take market share from its competitors as its market share rose to 19.2 percent, up from 16.8 percent one year ago (see Table 1).

Table 1
Preliminary Worldwide Server Unit Shipment Estimates for 3Q02 (Units)
Company 3Q02 Shipments 3Q02 Market Share (%) 3Q01 Shipments 3Q01 Market Share (%) Growth (%)
Hewlett-Packard 332,364 30.0 349,036 32.5 -4.8
Dell 212,880 19.2 180,201 16.8 18.1
IBM 153,781 13.9 155,803 14.5 -1.3
Sun Microsystems 68,193 6.2 58,036 5.4 17.5
NEC 24,291 2.2 25,549 2.4 -4.9
Others 314,823 28.5 304,111 28.3 3.5
Total 1,106,332 100.0 1,072,736 100.0 3.1
Note: The data for Hewlett-Packard and Compaq have been combined.
Source: Gartner Dataquest (October 2003)


The United States server market continued to show signs of recovery with a 12.2 percent increase in the third quarter of 2002, with shipments of 488,858 units, up from 435,620 in the third quarter of 2001 (see Table 2). Dell regained the No.1 position in the U.S server market garnering 26.3 percent of the market. HP fell to second place with 25.9 percent market share, followed by IBM, Sun Microsystems and Apple, respectively.

"The dust has not settled yet for HP. The real results of the HP purchase of Compaq, when it comes to server sales, probably will not manifest themselves until early next year," said Jeffrey Hewitt, principal analyst for Gartner Dataquest's Servers Worldwide program. "Dell continued its strategy for flexible product offerings based on standardized technology and stressed its ability to leverage R&D investments across the industry. The increased efficiency of its standardized component/direct sales model translates into better value for its customers and increased market share for the company."

Table 2
Preliminary U.S. Server Unit Shipment Estimates for 3Q02 (Units)
Company 3Q02 Shipments 3Q02 Market Share (%) 3Q01 Shipments 3Q01 Market Share (%) Growth (%)
Dell 128,426 26.3 101,330 23.3 26.7
Hewlett-Packard 126,526 25.9 127,183 29.2 -0.5
IBM 57,251 11.7 49,205 11.3 16.4
Sun Microsystems 33,967 6.9 30,088 6.9 12.9
Apple 5,700 1.2 1,525 0.4 273.8
Others 136,988 28.0 126,289 29.0 8.5
Total 488,858 100.0 435,620 100.0 12.2
Note: The data for Hewlett-Packard and Compaq have been combined.
Source: Gartner Dataquest (October 2002)


This is the third quarter of positive year-on-year growth for the United States. While this could be an indication that the server market in the United States is showing signs of recovery, it is too early to indicate whether this is a sustaining trend in that region. At the same time, while Asia/Pacific is also showing growth, Western Europe and Japan are still suffering from negative economic pressure.

These results are preliminary. 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.

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Contact:
Christy Pettey
Gartner
+ 1 408 468 8312
christy.pettey@gartner.com