According to IDC's Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market declined 0.2 percent year over year to $14.5 billion in the fourth quarter of 2005. This was the first year-over-year quarterly decline in revenue since the first quarter of 2003, as year-over-year quarterly compares become more difficult. Worldwide server unit shipments growth slowed modestly to 10.6 percent in 4Q05 when compared with the year-ago period.

Volume systems grew 7.3 percent year over year and the segment continue to be the catalyst for growth for the server market overall, gaining favor with SMB and enterprise customers alike. After four consecutive quarterly increases, revenue for midrange enterprise servers declined 11.5 percent year over year and the high-end enterprise server market showed a 1.7 percent decline year over year, the fifth consecutive quarter of declining revenue for high-end enterprise servers.

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