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San Jose, Calif., February 24, 1999—The U.S. server market experienced mixed results as revenue dropped 4.3 percent in the fourth quarter of 1998, while U.S. server shipments grew 15.9 percent over the fourth quarter of last year, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT). The decrease in revenue is due to falling prices resulting in U.S. server revenue of $4.4 billion in the fourth quarter of 1998, down from $4.6 billion in the fourth quarter of 1997. Shipments reached 306,000 units.
"Entry level server unit growth was greater than 19 percent, but revenues remained flat, as technology differentiation in this segment has all but disappeared and logistics execution has become more important," said Angela Dehzad, analyst for Dataquest's Servers Quarterly Statistics United States program.
IBM held onto the No. 1 position in the fourth quarter despite flat growth over last year. Compaq had low growth of 4.6 percent, but remained in the No. 2 position. Three of the top five vendors showed very positive year-over-year growth, with Dell growing an astounding 95.3 percent (see Table 1).
Table 1 U.S. Server Revenue Estimates for Fourth Quarter 1998 (Millions of Dollars) Company Q4/97 Revenue Q4/97 Market Share (%) Q4/98 Revenue Q4/98 Market Share (%) Growth (%) IBM 1,346 29.1 1,351 30.5 0.3 Compaq 711 15.4 744 16.8 4.6 Hewlett-Packard 580 12.5 685 15.4 17.9 Sun Microsystems 476 10.3 572 12.9 20.3 Dell 128 2.8 250 5.6 95.3 Others 1,389 30.0 832 18.8 -40.1
Total 4,631 100.0 4,433 100.0 -4.3 Source: Dataquest (December 1998) |