The global economic situation continued to hamper the worldwide server market during the third quarter. According to IDC, worldwide server factory revenues declined 30 percent from $15.2 billion in the third quarter of 2000 to $10.7 billion in the third quarter 2001. Even though the United States experienced the most downturn in the market, the slowdown continues to affect other areas of the world.

"The difficult economic conditions worldwide were clearly reflected in server sales this quarter," says Vernon Turner, IDC's vice president of Global Enterprise Server Solutions. "We expect that price wars, especially in the entry server market will stimulate growth over the next two quarters."

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