Server shipments up but revenues down


Server shipments up but revenues down

Karl Flinders

More servers were shipped in the second quarter of this year compared with the same period last year but revenues for the suppliers fell, according to the latest report from Gartner.

In the second quarter of 2013, shipments of servers increased 4% compared with the same quarter a year earlier but revenue fell 3.8%.


The total number of servers shipped in the period was 2.46 million and revenues $12.4bn.

IBM and HP both saw revenues and shipments drop significantly. IBM’s revenue of just under $3.2bn was 9.7% lower than the previous year with 210,000 servers shipped compared with 228,000 last year, while HP’s revenues dropped 17.5% to $3.09bn with shipments of 587,000 servers, a 13.6% decline.

Cisco’s shipments in the period grew 58.5% to 77.729 and its revenues increased 43.3% to $540m

Jeffrey Hewitt, research vice-president at Gartner said the global server market remains in a relatively weak state. 

“The only real regional bright spot was Asia/Pacific with growth of 10% and 21.7% year on year in terms of revenue and shipments,” Hewitt said.

In the Europe, Middle East and Africa region, server shipments were about 550,000, which was a 5.9% decrease of from the same period last year and revenue was $3.1bn which was 4.6% less than the same quarter last year.

In Western Europe, revenue declined 1.6%; in Eastern Europe it fell 17.9% and the Middle East and Africa region decreased 9%.

“This was the seventh consecutive quarter for shipment decline and the eighth consecutive quarter for revenue decline, showing an even more sustained period of weakness than the one we saw during the economic downturn that began in 2008,” said Gartner analyst Adrian O’Connell.





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