Gartner: Worldwide server shipments up but revenue drops

Summary:Hewlett-Packard managed to top the global server market as far as shipments are concerned, followed by Dell and IBM.

There's good news and bad news as far as the worldwide server market is concerned.

According to the latest figures from Gartner, shipment numbers were up during the first quarter of 2012. However, that doesn't mean sales figures are on par as well as Gartner researchers also found that revenue was on the decline during the same time frame.

Fortunately, the disparity isn't too great -- yet. Specifically, worldwide server shipments grew by 1.5 percent whereas server revenue declined 1.8 percent.

However, Jeffrey Hewitt, research vice president at Gartner, noted in the report that results really changed if you look that the numbers in a different light.

The first quarter of 2012 produced relatively weak shipment growth on a global level with a variation in results by region. All regions showed growth in server shipments except Western Europe which posted a decline of 6.4 percent. In terms of revenue, Asia/Pacific, Middle East/Africa, and Western Europe posted declines. These results are not that surprising considering the current variations in regional economic conditions.

To hone in even further, Eastern Europe grew the most during the first quarter with a 16 percent increase in shipments while Japan posted the highest vendor revenue growth with 10.6 percent.

Following better-than-expected second quarter earnings (despite major layoffs coming up), Hewlett-Packard topped the global vendor list as far as shipments are concerned despite a 0.4 percent decline from the previous quarter.

Dell, IBM, Fujitsu, and Cisco rounded out the top five -- and the last two were the only ones to see any growth in shipment numbers during Q1 2012.

Furthermore, Fujitsu was also the only company among the top five global server vendors to post positive revenue growth at 4.5 percent.


Topics: Hewlett-Packard


Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider,, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for, Irish Americ... Full Bio

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