To: porcupine --''''> who wrote (1069 ) 12/27/1998 8:38:00 PM From: porcupine --''''> Respond to of 1722
IBM Remains #1 in Server Sales; Sun and Dell Gain "Worldwide Q3 server revs softer, shipments up -IDC" FRAMINGHAM, Mass., Dec 17 (Reuters) - Worldwide server market revenues fell 3 percent in the third quarter as the industry faced pricing pressure but shipments remained robust, increasing 15 percent, an industry report said Thursday. Pricing pressure, particularly in the low end of the market and in Asian economies, accounted for the disparity in the revenue and shipment growth, according to the report by International Data Corp., an information technology research company. Sun Microsystems Inc. continued to move past competitors and increase market share while Dell Computer saw strong revenues growth. IDC said market turmoil in Japan, coupled with worldwide price pressure contained revenue growth. Pockets of strong growth remain, however, particularly in the domestic market of the U.S. and Western Europe. The U.S. server market continued its strong revenue growth, gaining 8 percent over the same period last year, fueled by sustained economic growth and corporate investment, the IDC report said. Western Europe had a strong showing, surging by 23 percent in server revenues from one year ago. Japan continued to falter, with server revenues sinking by 38 percent from one year ago. Excluding Japan, the Asia-Pacific region broke a streak of losing quarters to increase total server revenues by 15 percent from the same period last year. IBM ranked first in revenues, followed by Hewlett-Packard Co., their revenues growing at 20 percent and 17 percent year over year, respectively. Compaq Computer Corp. came in third after a bad quarter for the company's server business, the report said. Sun Microsystems landed in the No. 4 spot for server vendors when measured by revenue, growing its server revenues by 39 percent from one year ago. Hard hit by continued economic turmoil in their home markets, Japanese server vendors such as Fujitsu Ltd <6702.T>, NEC Corp <6701.T> and Hitachi Ltd. <6501.T> all posted steep double digit declines in server revenues. Dell remains a rising star with 62 percent year over year growth in server revenues, the report said. ((New York News Desk 212 859-1700))