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Global server market continues to decline

The worldwide server market declined 26% in the fourth quarter of 2001 from the same period last year while unit shipments dropped 7% to 1.143 million units.

The worldwide server market declined 26% in the fourth quarter of 2001 from the same period last year while unit shipments dropped 7% to 1.143 million units. However, despite the decline, analysts at IDC believe that the market may be about to enter a period of recovery.

“Despite the decline in revenue and shipment for the quarter, there are some flames beginning to kindle the market. When comparing the decline rate with the previous quarter, there are indications that the server market has bottomed out and that it will return to its average seasonal trends in 2002,” says Vernon Turner, IDC's group vice president of Global Enterprise Server solutions.

The analyst house also reports fierce competition for the number one spot in the Unix market. In the fourth quarter of last year IBM edged out Sun Microsystems to take the global top spot with a revenue market share of 26.9%, compared to Sun’s 26.8%. HP ended the quarter closely behind with 25% market share.

The high-end server market also declined, dropping 9.4% from $13.1 billion in 2000 to $11.9 billion in 2001. Steve Josselyn, research director, enterprise server fundamentals program, explains that although these declines are significant, the high-end market was buoyed for much of the year by steady increases from IBM’s new zSeries family in its first full year of shipments. “These increases offset declines for most other high-end platforms,” he says.

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