Dell reclaims lost ground to head shipments table

Dell mounted a comeback in the server market during the third quarter, outperforming the other leading vendors with an increase in worldwide shipments of over 10% year-on-year

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By  Published  December 3, 2006

Dell mounted a comeback in the server market during the third quarter, outperforming the other leading vendors with an increase in worldwide shipments of over 10% year-on-year, according to analyst firm Gartner Group.

The results go some way toward making up for a disappointing second quarter for the Texas, US, firm, which had posted worldwide shipment growth of just 2.3% for Q2, while its main rivals experienced growth well above 10% in the three months ending in July, the analyst group’s figures show.

For Q3, Dell increased its shipments from 416,148 in the same period last year to 459,950 units, increasing its market share slightly and consolidating its position in second place behind HP in the market, with IBM and Sun Microsystems in third and fourth place respectively.

Overall, Gartner said worldwide server shipments for Q3 increased 9.1% year-on-year — compared to just 2.5% the previous quarter — reaching just over two million units, while worldwide revenue for the same period climbed 4.4% to US$13 billion. The analyst group’s figures show IBM continued to lead the market in sales with an increase of 7.4% to US$4.4 billion and gained a significant advantage over second place HP, which saw its sales during Q3 slip 6% — the only one of the top four vendors to lose ground year-on-year.

For the second consecutive quarter, Sun posted significant annual growth in revenue with an increase of 24.7% to US$1.3 billion — by far the biggest increase of any of the leading vendors. During Q2 Sun was the only vendor to show positive growth year-on-year with a rise in sales of 13.7%.

“Blade servers and x86 servers in total continue to produce the highest growth levels within the overall market,” said Jeffrey Hewitt, research director at Gartner. “Both of these server types show ongoing installation growth at the front and middle of the web server tiers.

“RISC-Itanium Unix servers fell 6% in shipments for the quarter but grew slightly in revenue at 0.6%.

The top three shipment market leaders in order in this segment, Sun, IBM and HP retained their relative positions from the same quarter last year, but their revenue positions reshuffled with IBM taking the lead, Sun in second place and HP in third.”

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