Workstation sales decline as economic woe continues

The workstation market continues to suffer as IDC reports that the first quarter of 2002 has seen an overall decline in both revenues and units shipped.

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By  Matthew Southwell Published  May 28, 2002

The workstation market continues to suffer as the global economic downturn hits all aspects of the IT industry. According to the figures from IDC, the first quarter of this year has seen the Windows-based workstation market remain flat and the Unix-based market decline by nearly 20%. The overall workstation market declined in the first quarter of 2002 in both unit and revenue terms.

IDC’s analysts suggest that this decline was compounded by continued economic turbulence, the migration of Unix users to Windows-based workstations and price/performance pressure from the high-end desktop market.

“The days of fast growth in the Windows-based workstation market are over,” says Kate Sullivan, research analyst in the workstations research group at IDC.

“Economic conditions have undoubtedly slowed growth in the short term, however, the market has matured to a point that it is unlikely it will grow faster than 5-10% in the coming years even with a complete economic recovery,” she adds.

Despite the decline, Dell maintained its lead in the personal workstation market, capturing 50% of unit market share. The vendor also came in first in the total (Windows/IA, Unix/RISC, and Itanium) workstation market with 40% unit share. Compaq, IBM, and HP were second, third, and fourth respectively.

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