Server Market Revenue Increased 12.6 Percent in 4Q18

Server Market Revenue Increased 12.6 Percent in 4Q18
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Vendor revenue in the worldwide server market increased 12.6% year over year to $23.6 billion during the fourth quarter of 2018 (4Q18), according to IDC. Shipments increased 5.0% year over year to just under 3.0 million units in 4Q18.

The overall server market continues to experience robust demand with 4Q18 marking the fifth consecutive quarter of double-digit revenue growth and its highest total revenue in a single quarter ever. Volume server revenue increased by 17.8% to $19.0 billion, while midrange server revenue grew 30.3% to $2.5 billion. High-end systems declined 28.3% to $2.1 billion.

Tied for the number one position in the worldwide server market during 4Q18 were Dell, at 18.7% revenue share, and HPE/New H3C Group, with 17.8%, growing 20.4% and 10.5% year to year respectively. IBM was the third-ranked capturing 8.3% of total revenues. Inspur and Lenovo tied for fourth with revenue shares of 6.6% and 6.2% respectively. Dell led the worldwide server market in terms of unit shipments, accounting for 19.4% of all units shipped during the quarter.

Top 5 Companies, Revenue4Q18 (Revenues are in US$ Millions)

Company

4Q18 Revenue

4Q18 Share

4Q17 Revenue

4Q17 Share

Growth

T1. Dell

$4,426.2

18.7%

$3,677.2

17.5%

20.4%

T1. HPE

$4,199.8

17.8%

$3,801.9

18.1%

10.5%

3. IBM

$1,951.0

8.3%

$2,652.9

12.8%

-27.6%

T4. Inspur

$1,548.8

6.6%

$907.2

4.3%

70.7%

T4. Lenovo

$1,458.7

6.2%

$1,090.0

5.2%

33.8%

ODM Direct

$4,736.2

20.1%

$4,245.4

20.2%

11.6%

Rest of Market

$5,294.3

22.4%

$4,566.1

21.8%

15.9%

Total

$23,615.0

100%

$20,980.7

100%

12.6%

 

Top 5 Companies, Shipments 4Q18 (Shipments are in thousands)

Company

4Q18 Shipments

4Q18 Share

4Q17 Shipments

4Q17 Share

Growth

1. Dell

580.6

19.4%

582.5

20.4%

-0.3%

2. HPE

473.8

15.8%

483.7

17.0%

-2.0%

3. Inspur

247.6

8.3%

182.4

6.4%

35.7%

T4. Huawei

211.6

7.1%

166.4

5.8%

27.2%

T4. Lenovo

190.7

6.4%

181.6

6.4%

5.0%

ODM Direct

695.9

23.3%

653.0

22.9%

6.6%

Rest of Market

592.8

19.8%

602.1

21.1%

-1.5%

Total

2,993.0

100%

2,851.6

100%

5.0%

On a geographic basis, Asia/Pacific (excluding Japan) was the fastest growing region in 4Q18 with 25.5% growth. Latin America grew 15.4% during the quarter, while the Europe, the Middle East and Africa (EMEA) region grew 15.2% on aggregate. Demand for x86 servers increased 18.7% in 4Q18 to $21.1 billion in revenue. Non-x86 servers contracted 21.6% year over year to $2.5 billion.