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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: hlpinout who wrote (89502)	2/5/2001 6:20:40 PM
From: hlpinout	Read Replies (6) \| Respond to of 97611

World-Wide Server Computer Sales Rose 21% in 4th Quarter February 05, 2001 12:26 PM SAN JOSE, Calif. -- World-wide sales of server computers jumped 21% in the fourth quarter, driven by adequate component supply and robust growth of servers based on Intel Corp. architecture, according to a study by Gartner Group Inc.'s Dataquest Inc. unit. Separately, the technology consultant said world-wide sales of workstation computers rose 11% for the quarter amid slackening demand in the U.S. Gartner Dataquest on Monday said preliminary estimates show that a total of 1.1 million servers were shipped world-wide in the fourth quarter. That pushed total shipments for 2000 to 3.9 million units, up 14% from 1999. Compaq Computer Corp. (CPQ) continues to lead the server sector with a 27% share. The company shipped 1.07 million servers in 2000, up 11% from a year earlier. Rivals Sun Microsystems Inc. (SUNW) and Dell Computer Corp. (DELL) showed the strongest growth among the top-tier server vendors in 2000. Dell's server shipments grew 42% to 573,219 for the year, giving the company roughly 15% of the market. Sun holds only 7.3% of the server market, but the company posted a 61% gain in server shipments, which totaled 286,661 for the year. The U.S. server market posted growth of 32% for the fourth quarter despite concerns that an economic slowdown would hurt the sector. Growth was fueled by demand from e-businesses for front-end Web application and database servers, said Gartner Dataquest analyst Jeffrey Hewitt. However, Mr. Hewitt warned that the softening economy might hurt the server sector in upcoming quarters. "Because of the length of typical server purchase cycles, the next two quarters will be critical in assessing the impact of the current economic situation on the server market," he said. Meanwhile, world-wide shipments of workstation computers surpassed 1.65 million units in 2000, up 11% from 1999 shipments, Gartner Dataquest said. Dell bumped Sun from the No. 1 position, grabbing 23% of the workstation market as its shipments soared 60% to 381,718 in 2000. Sun, which now has roughly 22% of the sector, saw shipments increase 11% to 358,909 for the year. International Business Machines Corp. (IBM) and Hewlett-Packard Co. (HWP) posted declines in workstation shipments for the year. IBM's world-wide workstation shipments fell 19% to 176,264, giving the company about an 11% share of the market. H-P, which has about an 18% share, saw shipments slip 7.2% to 289,674 in 2000. Shahin Naftchi, a senior analyst at Gartner Dataquest, said some vendors cited softer demand for workstations in the U.S., which accounts for about half of current workstation shipments. "Our research shows that the U.S. market is expected to continue to be weak in the early part of 2001," Mr. Naftchi said. However, Gartner Dataquest said the industry may see some upturn in 2001 with the implementation of Intel's Pentium 4-based uniprocessor workstation, which was introduced in the fourth quarter. "We expect the Pentium 4 ramp up in the first and second quarters of 2001, although many end users may bypass these workstations and wait until the dual-processor chipsets and the Pentium 4 Xeon CPU arrives this spring," said Gartner Dataquest analyst Pia Rieppo. Copyright (c) 2001 Dow Jones & Company, Inc