The sluggish U.S. economy proved to be a killjoy for the worldwide server market during the first quarter. According to IDC, worldwide server factory revenues declined four percent from $13.8 billion in the first quarter of 2000 to $13.3 billion in the first quarter of 2001. In the U.S. market, the descent was much more precipitous as revenues plummeted 16 percent from $5.2 billion in the first quarter of 2000 to $4.4 billion in the first quarter of 2001.

"Though the decline in the U.S. market was quite severe, strong growth in other parts of the world such as Western Europe and Asia/Pacific kept worldwide damage in check," says Vernon Turner, IDC's vice president of Global Enterprise Server Solutions.

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