Server sales grow 10 per cent in 2003

Computer manufacturers saw unit sales of servers jump by just over 10 per cent worldwide during the first quarter, according to a new report from market researcher Gartner.

Unit sales of the heavy-duty computers totalled 1.2 million units during the first quarter, a year-over-year increase of 10.4 per cent, Gartner said.

The growth in server sales during the first three months of the year outpaced that of the overall PC market. Worldwide PC unit shipments grew 5.5 per cent during the quarter, Gartner said earlier this month. Gartner's PC market share figures include desktops, notebooks and servers priced under $25,000.

But Gartner said that several factors are still holding back the market as a whole and are, in particular, reducing unit sales of more expensive servers.

"The worldwide server market performed better than expected in the first quarter of 2003, but the threat of a lingering war with Iraq, combined with a weak economy, still had an effect on IT spending during the quarter," Shahin Naftchi, a Gartner analyst, said in a statement. "As a result, the life cycle for existing large systems was extended and corporate buyers delayed purchases of high-end equipment, preferring the quick returns from short-term investments instead."

Hewlett-Packard shipped the most servers during the first quarter. It sent out 356,692 units, giving it 29.1 per cent of the worldwide market, the new report said. Dell moved 248,227 servers for a 20.2 per cent share of the market, making it the world's second largest manufacturer of servers.

Servers are an important and profitable market for Dell and HP, which have been battling for market dominance. The companies' positions atop the worldwide PC market were reversed in the first quarter, during which Dell accounted for 16.9 per cent of the market and HP 15.6 per cent, Gartner said.

In the server realm, IBM was the third most prolific shipper in the first quarter of 2003, sending out 182,034 units, garnering 14.8 per cent of the market. Sun Microsystems and Fujitsu-Siemens were in fourth and fifth positions with 60,627 units (4.9 per cent) and 28,709 units (2.3 per cent), respectively.

In the US, Dell and HP swapped places. Dell took the top spot with 135,215 servers shipped, or 27.1 per cent of the market. HP was close behind with 126,364 units shipped, earning it a market share of 25.3 per cent.

IBM, Sun and Gateway were, respectively, third, fourth and a distant fifth in the US market, which totalled 499,609 units, Gartner said.

John G. Spooner writes for News.com