Friday, 07 June 2019 09:30

Server shipments fell in 1Q2019, but revenue up: IDC

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Server shipments fell in 1Q2019, but revenue up: IDC Image by frabre from Pixabay

Global server shipments slipped by 5.1% year-on-year to 2.6 million units in the first quarter of 2019, the research firm IDC says, adding, however, that the revenue earned by this sector during the same period grew by 4.4% to US$19.8 billion.

The slowing of the server market came after six straight quarters of double-digit revenue growth. Volume server revenue grew 4.2% to US$16.7 billion, while mid-range server revenue increased 30.2% to US$2.1 billion.

Revenue from high-end systems fell for the second consecutive quarter, falling 24.7% year-on-year to US$976 million.

"Demand from both enterprise buyers and hyperscale companies purchasing through ODMs was less voracious than in previous quarters; coupled with a difficult compare period from a year ago, this impacted the pace of market growth during the first quarter," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC.

"This was most evident in declining unit shipments during the quarter, although year-to-year average selling price increases supported revenue growth for many vendors. As long as demand for richly configured servers supports further ASP growth, the market will offset slight declines in unit volume."

server market 1q2019

Dell was the top revenue earner for the quarter, with 20.2%, followed by HPE/New H3C Group (17.8%) and Inspur/Inspur Power Systems (6.2%).

In terms of shipments, Dell was again the top vendor, accounting for 20% of global shipments.

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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