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EMEA shipments reached 307,761 units, compared with 320,956 units shipped in the same period last year, Dataquest reported.
However, the US server market was up 9.9% in the second quarter, to 482,647 units, said Dataquest. Worldwide server shipments totalled 1.08 million units, up 0.5% over the same quarter last year, Gartner said.
The weakness in the European market is mainly because of a lack of new project-related investment, Dataquest said.
With buyers favouring low-end systems over midrange servers, vendors priced systems aggressively, and the overall EMEA server market declined in value by 14% in the quarter, compared with the same period last year, falling to $3.54bn (£2.3bn).
The combination of Hewlett-Packard and Compaq moved the new company into first place in the European rankings, despite HP and Compaq both individually selling less than last year.
The new HP had 39.3% market share. IBM came in second place, with 14.5% of the market and Dell third with a 13.9% share of the server market.
Sun Microsystems, in forth place with 7.7% of the EMEA server market, showed a 21.3% improvement on last year with 23,845 units shipped in the quarter.