Server Revenue Grew 25.7% in 4Q17, While Shipments Increased 8.8%

Server Revenue Grew 25.7% in 4Q17, While Shipments Increased 8.8%

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The worldwide server market continued to grow through 2017 as worldwide server revenue increased 25.7 percent in the fourth quarter of 2017, while shipments grew 8.8 percent year over year, according to Gartner. In all of 2017, shipments grew 3.1 percent and revenue increased 10.4 percent compared with full-year 2016.

Regional results were a mixed bag. North America and Asia/Pacific were particularly robust demonstrating double-digit growth in revenue (27.6 percent and 35.1 percent, respectively). In terms of shipments, North America grew 9.7 percent and Asia/Pacific grew 21.2 percent.

EMEA posted strong yearly revenue growth of 19.9 percent while shipments decreased 7.9 percent. Japan grew 4.8 percent in revenue, but declined 5.1 percent in shipments. Latin America was the only region to exhibit a decline in both shipments (negative 4.7 percent) and revenue (negative 2.9 percent) in the fourth quarter of 2017.

Dell EMC and HPE were neck-and-neck in the worldwide server market based on revenue in the fourth quarter of 2017. Dell EMC ended the year in the No. 1 spot with 19.4 percent market share, followed closely by HPE with 19.3 percent of the market. Dell EMC experienced strong growth in the quarter with 39.9 percent growth. HPE grew 5.5 percent. Inspur Electronics experienced the strongest growth in the fourth quarter of 2017 with 127.8 percent growth.

Server Vendor Revenue Estimates, 4Q17 (U.S. Dollars)

Company

4Q17 Revenue

4Q17 Market Share (%)

4Q16 Revenue

4Q16 Market Share (%)

4Q17-4Q16 Growth (%)

Dell EMC

3,606,976,178

19.4

2,578,181,854

17.4

39.9

HPE

3,578,005,770

19.3

3,392,601,012

23.0

5.5

IBM

2,623,501,533

14.1

1,732,474,861

11.7

51.4

Inspur

1,260,671,411

6.8

553,514,048

3.7

127.8

Huawei

1,244,283,075

6.7

1,149,813,371

7.8

8.2

Others

6,253,392,745

33.7

5,369,366,683

36.3

16.5

Total

18,566,830,711

100.0

14,775,951,829

100.0

25.7

In server shipments, Dell EMC maintained the No. 1 position in the fourth quarter of 2017 with 18.2 percent market share. Despite a decline of 12.8 percent in server shipments, HPE secured the second spot with 13.8 percent of the market.

Server Vendor Shipments Estimates, 4Q17 (Units)

Company

4Q17 Shipments

4Q17 Market Share (%)

4Q16 Shipments

4Q16 Market Share (%)

4Q17-4Q16 Growth (%)

Dell EMC

582,720

18.2

562,029

19.1

3.7

HPE

439,936

13.8

504,407

17.2

-12.8

Huawei

257,916

8.1

245,611

8.4

5.0

Inspur

235,658

7.4

141,132

4.8

67.0

Lenovo

181,523

5.7

220,296

7.5

-17.6

Others

1,499,578

46.9

1,265,169

43.1

18.5

Total

3,197,331

100.0

2,938,644

100.0

8.8

The x86 server market increased in revenue by 23.7 percent, and shipments were up 8.9 percent in the fourth quarter of 2017. In 2017, worldwide sever shipments increased 3.1 percent, while revenue grew 10.4 percent.

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