Gartner Says Worldwide Server Shipments Increased 10 Percent in the First Quarter of 2003
STAMFORD, CONN., April 28, 2003 — Worldwide server shipments totaled 1.2 million units in the first quarter of 2003, a 10.4 percent increase from the same period last year, according to preliminary statistics from Gartner, Inc. (NYSE: IT and ITB).
"The worldwide server market performed better than expected in the first quarter of 2003, but the threat of a lingering war with Iraq, combined with a weak economy, still had an effect on IT spending during the quarter," said Shahin Naftchi, principal analyst covering servers for Gartner's servers worldwide group. "As a result, the life cycle for existing large systems was extended and corporate buyers delayed purchases of high-end equipment, preferring the quick returns from short-term investments instead."
Hewlett-Packard retained the top spot in the worldwide rankings with 29.1 percent of server shipments. Dell Computer remained in the No. 2 spot with 20.2 percent of the market, followed by IBM with market share of 14.8 percent. Sun Microsystems was the only top-tier vendor to experience a decline in worldwide server shipments in the first quarter of 2003. The top three vendors continued to dominate the market and accounted for more than half of all units shipped during the quarter (see Table 1).
Table 1
Preliminary Worldwide Server Unit Shipment Estimates for 1Q03 (Units)
Company
1Q03 Shipments
1Q03 Market Share (%)
1Q02 Shipments
1Q02 Market Share (%)
Growth (%)
Hewlett-Packard
356,692
29.1
344,158
31.0
3.6
Dell
248,227
20.2
194,141
17.5
27.9
IBM
182,034
14.8
151,458
13.6
20.2
Sun Microsystems
60,627
4.9
69,835
6.3
-13.2
Fujitsu Siemens
28,709
2.3
22,160
1.9
29.6
Others
349,989
28.5
329,369
29.6
6.3
Total
1,226,278
100.0
1,111,121
100.0
10.4
Note: Hewlett-Packard and Compaq are reported as one company.
Source: Gartner Dataquest (April 2003)
The U.S. server market experienced an increase of 13.2 percent in the first quarter of 2003, with shipments of 499,609 units, up from 441,540 units in the first quarter of 2002 (see Table 2). This is the fifth consecutive quarter in which the United States posted a year-over-year growth rate greater than 10 percent. Dell moved into the No. 1 spot in the U.S. server market with 27 percent of the market.
"Dell led the top-tier U.S. vendors in shipment growth with an increase of 24 percent compared to the same quarter a year ago, and that is in part due to the strengths of its partnerships, ranging from database offerings with Oracle to its storage solutions with EMC," said Jeffrey Hewitt, principal analyst for Gartner's servers worldwide group. "HP's performance in the first quarter of 2003 could have been impacted in part by server seasonality, which is normally weaker in the first quarter of the year following a strong fourth quarter."
Table 2
Preliminary U.S. Server Unit Shipment Estimates for 1Q03 (Units)
Company
1Q03 Shipments
1Q03 Market Share (%)
1Q02 Shipments
1Q02 Market Share (%)
Growth (%)
Dell
135,215
27.1
109,091
24.7
23.9
Hewlett-Packard
126,364
25.3
111,617
25.3
13.2
IBM
61,531
12.3
51,307
11.6
19.9
Sun Microsystems
29,690
5.9
35,836
8.1
-17.2
Gateway
3,300
0.7
4,000
0.9
-17.5
Others
143,509
28.7
129,689
29.4
10.7
Total
499,609
100.0
441,540
100.0
13.2
Note: Hewlett-Packard and Compaq are reported as one company.
Source: Gartner Dataquest (April 2003)
"Since the war with Iraq started toward the end of the first quarter of 2003, it didn't have a severe effect during the quarter. The major question remaining is when the economic recovery will start. It is unlikely that the market will experience a strong surge as it has during past economic recoveries, but rather will undergo a gradual uplift as purchasing activity returns to normal," said Joseph Gonzalez, analyst for Gartner's servers worldwide group.
Additional information is available in the Gartner Dataquest Alert Server Shipments Slip Sequentially, Grow Yearly in 1Q03. This alert examines the current state of the worldwide server industry. It also looks at what trends are developing, and how the top-tier vendors are performing.
These results are preliminary. Final statistics will be available soon to clients of Gartner'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.
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