European and Australian Server Markets Collapse in Q1
June 15, 2009 Timothy Prickett Morgan
The global server sales and shipment statistics from IDC and Gartner that we reported on in the past two issues of The Four Hundred show just how bad the impact of the economic meltdown has been on server makers. Subsequent data released by these two companies shows that if the global server market was awful in Q1, then it was terrible in Europe and downright shocking in Australia. To recap the server picture on a global basis: Gartner says that server sales fell by 24 percent to $10.1 billion, and shipments fell by 24.2 percent to 1.72 million boxes, while IDC (which only measures factory revenues and shipments out of vendors) reckons that factory revenues for servers fell by 24.5 percent to $9.9 billion and shipments fell by 26.5 percent to just under 1.5 million units. Both companies agree on one thing: this was the worst quarter for server global shipment and revenue declines in history. According to Gartner, server sales in Europe, the Middle East, and Africa swooned by 34.2 percent to just over $3 billion, and shipments in the region fell by 29 percent to 507,177 units. All of the server makers did terribly in EMEA, and Fujitsu, which was in the process of taking over the Siemens half of the Fujitsu-Siemens partnership, did the worst, oddly enough, with revenues dropping 46.3 percent to $199.8 million. (Some of this has to do with currency translation from euros and pounds to dollars.) Hewlett-Packard‘s sales in the EMEA region declined by 33.1 percent to $1.08 billion, meaning that it still held onto the top spot in EMEA. IBM pushed $876.2 billion in iron in Q1, down 32.4 percent, followed by Sun Microsystems, which is still ahead of Dell in EMEA despite its many woes, with sales of $341.9 million, down 36.4 percent. Dell came in number four, well ahead of Fujitsu, with $290.1 million in sales, down 37.9 percent. Down under in Australia, IDC calculates that overall server sales fell by 38.8 percent in Q1, with shipments down 38.9 percent. Down under, indeed. IDC did not provide revenue and shipment figures for the Australian market, but added that sales of X64 servers fell by a shocking 46.4 percent against shipment declines of 38 percent. Sales of other platforms in Australia–including Itanium, Power, Sparc, mainframe, and other platforms–fell by only 26.6 percent, which is a bit like a party compared to the X64 revenue declines. RELATED STORIES Gartner Confirms Server Sales Were Awful in Q1 Server Sales Breakdown Bigtime in the First Quarter The Economy Gives the Server Biz a Flat Tire in Q4 Server Sales Slumped As 2008 Stumbled to the Holidays Server Sales Decline in the Third Quarter X64 Servers See Pricing Pressure in Q2, Big Box Sales Grow Server Buyers Shop Like It’s 1999 in the Second Quarter Gartner Revises HP’s Server Sales Downward for Q1 U.S. Drags Down Server Sales in Q1, But Weak Dollar Helps The Server Biz Enjoys the X64 Upgrade Cycle in Q1 Linux and Windows Server Sales Outpace the Market in Q4 Gartner Gives Annual Report Cards to Server Makers IDC Says Server Buyers Weigh Economy and Power in Q3 Emerging Markets and Virtualization Drive Q3 Server Sales Server Sales in Q2 Reach Heights Not Seen Since 2000 The Market for Servers in Europe Is Hot Virtualization, Consolidation Drive Server Sales in Q1 Server Sales Up a Bit in 2006, But Q4 Looks a Bit Weak
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