First quarter server sales slide in Middle East and Africa

First quarter 2006 server sales declined year-on-year in the Middle East and Africa according to research house Gartner. Total EMEA shipments did increase 11.7% in unit terms, but overall revenues declined 1% to US$3.9 billion.

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By  Stuart Wilson Published  May 25, 2006

First quarter 2006 server shipments declined year-on-year in the Middle East and Africa according to research house Gartner. Total Europe, Middle East and Africa (EMEA) shipments did increase 11.7% in unit terms, but overall revenues declined 1% to US$3.9 billion. “The first quarter of 2006 saw mixed results for the EMEA server market,” said Adrian O’Connell, principal research analyst at Gartner. “The robust demand in the x86 segment contributed to the strong volume growth for this quarter, while weak results in the Unix segment were the reasons for the slight overall revenue decline.” Blade server shipments in EMEA displayed strong growth, climbing 49% in unit volume year-on-year, accounting for 8% of all units shipped. Breaking down the EMEA theatre by region, revenues from Eastern Europe soared 21% compensating to some extent the declines registered in both Western Europe and the Middle East and Africa. HP maintained top spot in EMEA, grabbing 33% market share in revenue terms with sales of US$1.29 billion. Second placed IBM did narrow the gap slightly, recording revenues of US$1.18 billion — 28.9% of the total market. Sun Microsystems, Dell and Fujitsu Siemens were ranked third, fourth and fifth respectively in the vendor rankings according to Gartner. In total, the top five vendors accounted for more than 90% of server revenues in EMEA during the first quarter. In terms of number of server units shipped, HP led the way, selling just under 217,000 units in the first quarter out of a total addressable market of 589,000 units. On a global level, the number of server units sold in the first quarter totalled almost 2m units — up from 1.7m a year earlier. Total server revenues were flat at US$12.35 billion. “The x86 server portion of the market continues to be the strongest segment,” said Jeffrey Hewitt, research director at Gartner. “x86 servers remain as the leading server choice for meeting ongoing web-related growth while other segments have started the year in a less positive mode.”

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