Server Sales Fall 30% But Seen Rebounding
FRAMINGHAM, Mass. (
) -- Worldwide server sales in the second quarter were $9.8 billion, a decrease of 30.1% from a year earlier, marking the fourth straight revenue decline and the lowest quarterly server revenue since IDC began tracking the server market in 1996.
IBM
(IBM) - Get Report
retained its No. 1 position in the worldwide server systems market, said IDC, a technology research company.
IDC also said server unit shipments fell 30.4% in the quarter from the same period a year earlier, representing the "largest ever year-over-year quarterly server unit decline as customers continued to defer server refresh activities."
"Over the past four quarters, the worldwide server market has experienced significant revenue deceleration in all geographic regions as the economic recession has deepened," said Matt Eastwood, a group vice president at IDC, in a statement. "Fewer servers have been shipped over the past four quarters than at any time since 2005 and it is clear that the worldwide server installed base is aging rapidly."
Eastwood, however, does see signs of a turnaround.
"In the weeks and months ahead, IDC believes that IT customers around the globe will begin to focus on the future once again, making strategic compute platform decisions for the next business cycle, and driving more predictable server demand as market conditions stabilize in the second half of 2009," he said.
IBM had a 34.5% market share in the second quarter on sales of $3.39 billion, while
Hewlett-Packard
(HPQ) - Get Report
stayed in second place with a market share of 28.5% on sales of $2.8 billion.
Dell
(DELL) - Get Report
came in third with a market share of 12.4% on sales of $1.2 billion, while
Sun
(JAVA)
finished fourth with a market share of 10% on sales of $981 million.
-- Reported by Joseph Woelfel in New York
.
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