Server Shipments Grew 2.4% in the Second Quarter; Revenue Up 2,8%

Server Shipments Grew 2.4% in the Second Quarter; Revenue Up 2,8%

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In the second quarter of 2017, worldwide server revenue increased 2.8% year over year, while shipments grew 2.4% from the second quarter of 2016, according to Gartner.

"The second quarter of 2017 produced some growth compared with the first quarter on a global level, with varying regional results," said Jeffrey Hewitt, research vice president at Gartner. "The growth for the quarter is attributable to two main factors. The first is strong regional performance in Asia/Pacific because of data center infrastructure build-outs, mostly in China. The second is ongoing hyperscale data center growth that is exhibited in the self-build/ODM (original design manufacturer) segment.

"x86 servers increased 2.5% in shipments and 6.9% in revenue. RISC/Itanium Unix servers fell globally for the period, down 21.4% in shipments and 24.9% in vendor revenue compared with the same quarter last year. The 'other' CPU category, which is primarily mainframes, showed a decline of 29.5% in revenue," Hewitt said.

Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue. Despite a decline of 9.4%, the company posted $3.2 billion in revenue for a total share of 23% for the second quarter of 2017. Dell EMC maintained the No. 2 position with 7% growth and 19.9% market share. Huawei experienced the highest growth in the quarter with 57.8%.

Server Vendor Revenue Estimates, 2Q17 (U.S. Dollars)

Company

2Q17

Revenue

2Q17 Market Share (%)

2Q16

Revenue

2Q16 Market Share (%)

2Q17-2Q16 Growth (%)

HPE

3,204,569,547

23.0

3,536,530,453

26.1

-9.4

Dell EMC

2,776,347,626

19.9

2,594,180,873

19.1

7.0

IBM

963,279,264

6.9

1,226,947,968

9.1

-21.5

Cisco

866,450,000

6.2

858,924,000

6.3

0.9

Huawei

845,543,611

6.1

535,946,936

4.0

57.8

Others

5,281,754,345

37.9

4,801,420,134

35.4

10.0

Total

13,937,944,394

100.0

13,553,950,355

100.0

2.8

Source: Gartner

In server shipments, Dell EMC maintained the No. 1 position in the second quarter of 2017 with 17.5% market share. HPE secured the second spot with 17.1% of the market. Inspur Electronics experienced the highest growth in shipments with 31.5%, followed by Huawei with 26.1% growth.

Server Vendor Shipments Estimates, 2Q17 (Units)

Company

2Q17

Shipments

2Q17 Market Share (%)

2Q16

Shipments

2Q16 Market Share (%)

2Q17-2Q16 Growth (%)

Dell EMC

492,854

17.5

529,135

19.2

-6.9

HPE

483,203

17.1

529,488

19.2

-8.7

Huawei

176,426

6.2

139,866

5.1

26.1

Inspur Electronics

158,373

5.6

120,417

4.4

31.5

Lenovo

145,655

5.2

235,267

8.5

-38.1

Others

1,367,176

48.4

1,203,525

43.6

13.6

Total

2,823,688

100.0

2,757,698

100.0

2.4

Source: Gartner

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