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Technology Stocks : Intel Corporation (INTC)
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To: Jim McMannis who wrote (140795)8/3/2001 3:56:45 PM
From: Paul Engel  Read Replies (2) of 186894
 
McPanic - Re: "OTOH, I hear things like Dells servers have a bad reputation compared to Compaqs which have a reputation of being very stable..."

Does this Server Market Share gain by Dell support what you "hear " - proabably from the store clerks down at your local Best Buy -

Dell, IBM gain in server market

By Mike Tarsala, CBS.MarketWatch.com
Last Update: 3:35 PM ET Aug. 3, 2001




STAMFORD, Conn. (CBS.MW) -- Dell Computer and IBM made server market-share gains in the second quarter, Gartner Group Dataquest reported Friday, while other major competitors declined.




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Dell (DELL: news, chart, profile) and IBM (IBM: news, chart, profile) had year-over-year growth, 28 percent and 10 percent, respectively, while Sun Microsystems' share dropped 15.4 percent, and Hewlett-Packard's fell 10.6 percent, Gartner reported.

High-end server shipments were hit hardest in the quarter, as customers cut back or deferred purchases due to a spreading economic slowdown, Gartner analysts reported.

Compaq claimed the top market share position, with 26.7 percent of the worldwide market, based on unit sales, followed by Dell and IBM, garnering 18 percent and 16.7 percent, respectively.

The worldwide server market grew 0.7 percent in the quarter. Worldwide server shipments of 973,784 units rose from 966,779 units in same period a year ago.

Dell and IBM were the only computer companies to increase server market share in the U.S., as well, according to Gartner. Dell's computer share, based on units, increased 14.9 percent, while IBM's (IBM: news, chart, profile) rose 13.9 percent. Hewlett-Packard's (HWP: news, chart, profile) share position dropped 26.8 percent. Sun's (SUNW: news, chart, profile) sank by 20.8 percent.

Second-quarter server shipments dropped 11 percent to 347,045 units, down from 390,951 units in the year-ago period. Dell and Compaq share the lead in the U.S. market with 28.5 percent of the market each, followed by IBM, Sun and Hewlett-Packard.

Shares of Dell, IBM, Compaq, Hewlett-Packard and Sun Microsystems all declined in afternoon Friday trading, reflecting a broad drop in technology stocks. The tech-heavy Nasdaq Composite lost 16.65 points, or 0.8 percent, to 2,070.79.

Mike Tarsala is a San Francisco-based reporter for CBS.MarketWatch.com
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