Gartner Dataquest Says Worldwide Server Shipments Experienced Slight Growth in 2001

SAN JOSE, Calif., January 30, 2002 -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., a unit of Gartner, Inc. (NYSE: IT and ITB).

"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," said Shahin Naftchi, senior analyst covering servers for Gartner Dataquest's Computing Platform Worldwide program. "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 (see Table 1).

Table 1
Preliminary Worldwide Server Unit Shipment Estimates for 2001 (Units)
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 (January 2002)

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," said Jeffrey Hewitt, principal analyst for Gartner Dataquest's Servers Worldwide program.

"Dell's direct business model and build-to-order model also played a part by enabling low inventory levels and allowing the company to quickly incorporate reductions in component costs into its pricing structures," Naftchi said.

Table 2
Preliminary U.S. Server Unit Shipment Estimates for 2001 (Units)
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 (January 2002)

These results are preliminary. Final statistics will be available soon to clients of Gartner Dataquest's Servers Quarterly Statistics program. This program offers a comprehensive, global market information service that analyzes and documents the server industry. To subscribe to these programs, please call 408-468-8000.

Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.

Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut,and consists of 4,300 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit