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Computer industry

Server Market Sees Revenue Growth, IBM Remains King

Strategic Insights

— 2 min read

In the second quarter, the global server market saw an increase in revenue, with sales reaching $11.5 billion. IBM maintained its position as the market leader, with a 30.7% market share and a 10.8% revenue growth over the same period last year. However, Dell Inc. recorded the largest revenue growth, with a 20.1% increase to $1.1 billion.

Key Takeaways:

  • IBM maintained its lead in the server market with a 30.7% market share, followed by Hewlett-Packard Co. with 27.3% and Sun Microsystems Inc. with 13%.
  • Dell Inc. recorded the largest revenue growth, with a 20.1% increase to $1.1 billion, surpassing the growth of its top four competitors.
  • Server sales increased 7.7% from the $10.7 billion sold in the second quarter of 2003, with IBM's sales increasing by nearly 11%.
  • The increase in server revenue is attributed to the growing demand for 64-bit servers, with Gartner principal analyst Mike McLaughlin noting that this trend is likely to continue.
  • Low-end market growth benefits companies such as Dell and H-P, with IBM recording higher revenue due to its sales of higher-end mainframes and server packages.
  • In terms of unit shipments, H-P remains the leader, but its market share slipped slightly to 28.9% from 29.4% a year ago.
  • Sun Microsystems Inc. saw the biggest unit gains, with a 38% increase in shipments compared to the same period last year.
  • Fujitsu/FSC rounded out the top five, with a 6.9% revenue increase and a 17.7% increase in shipments.

Statistics:

  • Total server sales reached $11.5 billion in the second quarter, a 7.7% increase from $10.7 billion in the same period last year.
  • IBM's sales increased by nearly 11%, expanding its lead in revenue share over No. 2 Hewlett-Packard Co.
  • Dell's revenue from server sales increased to $1.1 billion, a 20.1% gain over the same period last year.
  • The low-end market saw strong sales, with Gartner principal analyst Mike McLaughlin noting that this trend is likely to continue.
  • Sun Microsystems Inc. saw a 38% increase in unit shipments, the largest gain of any company in the top five.
  • In terms of unit shipments, H-P remained the leader, with a 29.3% market share, followed by Dell with 21.1% and IBM with 15%.

Sources:

  • Gartner Inc. report on the worldwide server market, second quarter.
  • Gartner principal analyst Mike McLaughlin, as quoted in the report.
  • IBM Corp. financial reports.
  • Hewlett-Packard Co. financial reports.
  • Sun Microsystems Inc. financial reports.
  • Dell Inc. financial reports.
  • Fujitsu/FSC financial reports.

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