Worldwide Server Market Revenues off to Slow Start in 1999, Says IDC
Pricing Pressures and Weak Japanese Market Impede Growth
FRAMINGHAM, Mass., June 22 /PRNewswire/ -- Just released first-quarter 1999 server data from International Data Corporation (IDC) indicates continuing weakness in the worldwide market for servers. Q199 figures reveal a total revenue decline of 0.5% from the same quarter a year ago. A significant revenue drop-off in emerging economies exacerbated the overall decline.
The Western European server market grew by 6% over Q198 in revenues to just under $3.8 billion in Q199, while the Japanese market declined by 4% over the same period. Server factory revenues in the United States grow by 5% to $5 billion, up from $4.7 billion one year ago.
Q199 Worldwide Highlights
-- Compaq Computer grew its server revenues by a lackluster 0.6%. All its major product lines experienced slow growth, including its traditional PC server business, which grow far slower than the general PC server market.
-- Market shares in Japan revealed steep revenue declines from local vendors Fujitsu and NEC, which both lost ground to American competitors IBM, Sun Microsystems, and Hewlett-Packard.
-- Average selling values (ASVs) for all servers declined again in Q199, continuing a trend of pricecutting. Q199 prices were down over 20%, compared with the same quarter in 1998.
-- In Q199, Dell and Sun Microsystems both continued impressive revenue growth, surging 73% and 33%, respectively, over the same quarter last year. |
