Strong Unit Growth in Workstation Market in
1998 But Revenues Decline Slightly, According to IDC
Framingham, MA, January 19, 1999 - A newly released bulletin from International Data Corporation
(IDC) entitled The Workstation Market, 1998: The Year in Review estimates total 1998 workstation
shipments grew 22% over 1997, reaching 2.3 million. However, market revenues declined by 3% over last
year, leveling off at $14.7 billion. Hewlett-Packard was the overall leader in unit shipments (21%), followed
by Dell (16%). Sun was the overall leader in revenue (23%), followed very closely by Hewlett-Packard
(22%). The total workstation market includes both Unix (traditional) and Windows NT (personal)
workstations.
"The lower cost of high performance Intel-based Windows NT systems brought workstation capabilities to a
much broader set of users than has historically been the case with Unix workstations. The result has been a
significant increase in units ships, but a modest decline in overall workstation revenue," says Tom Copeland,
Director for IDC's Workstation Research group.
For the second year in a row, the traditional (Unix) workstation market declined in both shipments and
revenue, by 6% and 16% respectively over the previous year. Total shipments were 599,110 and total
revenue was $7.9 billion. IDC believes the decline in shipments is attributable to decreased investment in
Unix workstations by companies in the U.S. and Europe and by the economic problems in Asia, particularly
in Japan. The additional revenue decline resulted from lower average selling prices due to increase
competition from Windows NT workstations. With consolidation in the Unix workstation market, Sun, HP
and IBM are now the strongest players. Sun leads in market share in both shipments (52%) and revenue
(43%), well ahead of second place Hewlett-Packard (16% in units and 23% in revenue).
Windows NT-based workstation shipments ($1.7 million) grew by 36% over last year, and revenues ($6.8
billion) increased by 18% from last year. HP and Dell are in a virtual tie for first place in both units (22.8%
and 22.3% respectively) and revenue (21.5% and 21.0%). The overall NT (personal) market data includes
both branded NT workstations - those systems marketed explicitly as workstations - and non-branded
workstations - high end desktops used as workstations.
Branded NT workstations - those systems marketed explicitly as workstations - showed exceptionally strong
growth (98%) in units (to 776,206) and 60% in revenue (to $3.6 billion). The strong growth in branded NT
workstations indicates the increased focus by the major PC vendors on the workstation segment.
Hewlett-Packard was the market share leader in both units (40%) and revenue (34%), followed by Dell with
19% share in both units and revenue.
"With more branded NT workstations shipping than Unix workstations in 1998, NT is driving the growth in
the workstation market. NT workstations have surpassed the start-up phase and have become mainstream in
the workstation market," says Tom Copeland.
Key Data
Personal (Windows NT) workstation shipments grew by 36% over last year, and revenues increased
by 18% from last year. HP and Dell are in a virtual tie for first place in both units and revenue.
Unit shipments of branded personal workstations surged 98% from last year, and revenues rocketed
to 60% over last year. For the first time ever, branded personal workstations outshipped Unix
workstations.
Branded NT workstations represent 56% of the total (NT and Unix) branded workstations shipped,
but only 32% of the revenue.
With a 10% shipment growth over last year, Sun was the only vendor to increase Unix shipments in
1998. Sun now accounts for over 50% of the traditional workstations shipped.
HP leads in total workstation units shipped worldwide with a share of 21%. Sun and HP are in a
virtual tie in workstation revenue worldwide with 23.1% and 22.5% share, respectively.
Looking ahead, IDC expects that big companies with large installed bases of Unix workstations will begin to
move NT systems into their core application areas in 1999 and 2000. IDC notes that the transfer will be an
arduous process that will take several years to complete. Nonetheless, the positive influences of emerging
markets and PC upsizing will continue to feed NT growth as well.
For more information or to purchase this bulletin (#B17937), call Cheryl Toffel at 1-800-343-4952, ext.
4389. IDC's Web site (http://www.idc.com) contains additional company information, recent news releases,
and offers full-text searching of the latest available research.
idc.com |
