The worldwide server market in 2001 experienced its lowest annual growth rate in unit shipments since 1996. Worldwide server shipments totaled 4.4 million in 2001, a 1.8 percent increase from 2000, according to preliminary statistics by Dataquest Inc.

"The initial sign of trouble was seen in the first quarter when the economic slowdown began to affect sales of higher-end, midrange systems in the United States and Western Europe," says Shahin Naftchi, a Dataquest analyst. "The terrorist attack on Sept. 11 also added to the problem by delaying shipments into and out of the United States during the latter half of the month, a time of year when many vendors expect to record a large portion of their quarterly shipments."

Compaq remained in the top spot with 23.3 percent of the worldwide market share, followed by Dell and IBM, with 16.1 percent and 15 percent, respectively. Dell and IBM were the only vendors to record positive year-over-year growth with Dell moving past IBM into the second position with 25.2 percent growth

Preliminary Worldwide Server Unit Shipment Estimates for 2001

Company

2001 Shipments

2001 Market Share (%)

2000 Shipments

2000 Market Share (%)

Growth (%)

Compaq

1,026,025

23.3

1,068,436

24.7

-4.0

Dell

711,614

16.1

568,410

13.1

25.2

IBM

661,547

15.0

657,979

15.2

0.5

Hewlett-Packard

428,104

9.7

440,512

10.2

-2.8

Sun Microsystems

254,053

5.8

289,231

6.7

-12.2

Others

1,326,072

30.1

1,302,943

30.1

1.8

Total

4,407,416

100.0

4,327,511

100.0

1.8

Source: Gartner Dataquest

The U.S. server market showed a 9.5 percent decline, with shipments of 1.7 million units in 2001, down from 1.9 million units in 2000 (see Table 2). Dell led the U.S. market with 23.4 percent, followed closely by Compaq with 22.6 percent.

"Dell's focus on one, two and four-way servers placed it in a competitive position as market conditions worsened making it the only top five vendor to experience positive growth in both the U.S. and worldwide markets," says Jeffrey Hewitt, of Gartner Dataquest.

Preliminary U.S. Server Unit Shipment Estimates for 2001

Company

2001 Shipments

2001 Market Share (%)

2000 Shipments

2000 Market Share (%)

Growth (%)

Dell

399,208

23.4

349,013

18.5

14.4

Compaq

385,164

22.6

482,644

25.6

-20.2

IBM

217,020

12.7

239,612

12.7

-9.4

Sun Microsystems

121,402

7.1

139,243

7.4

-12.8

Hewlett-Packard

99,708

5.9

129,044

6.9

-22.7

Others

480,851

28.2

542,628

28.8

-11.4

Total

1,703,353

100.0

1,882,184

100.0

-9.5

Source: Gartner Dataquest

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