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Gartner Says Worldwide Server Shipments Declined 4.2 Percent in the First Quarter of 2017 Revenue Declined 4.5 Percent

In the first quarter of 2017, worldwide server revenue declined 4.5 percent year over year, while shipments fell 4.2 percent from the first quarter of 2016, according to Gartner, Inc.

"The first quarter of 2017 showed declines on a global level with a slight variation in results by region," said Jeffrey Hewitt, research vice president at Gartner. "Asia/Pacific bucked the trend and posted growth while all other regions fell.

"Although purchases in the hyperscale data center segment have been increasing, the enterprise and SMB segments remain constrained as end users in these segments accommodate their increased application requirements through virtualization and consider cloud alternatives," Mr. Hewitt said.

Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue. The company posted just more than $3 billion in revenue for a total share of 24.1 percent for the first quarter of 2017 (see Table 1). Dell EMC maintained the No. 2 position with 19 percent market share. Dell EMC was the only vendor in the top five to experience growth in the first quarter of 2017.

Table 1: Worldwide: Server Vendor Revenue Estimates, 1Q17 (U.S. Dollars)

Company

1Q17

Revenue

1Q17 Market Share (%)

1Q16

Revenue

1Q16 Market Share (%)

1Q17-1Q6 Growth (%)

HPE

3,009,569,241

24.1

3,296,591,967

25.2

-8.7

Dell EMC

2,373,171,860

19.0

2,265,272,258

17.3

4.8

IBM

831,622,879

6.6

1,270,901,371

9.7

-34.6

Cisco

825,610,000

6.6

850,230,000

6.5

-2.9

Lenovo

731,647,279

5.8

871,335,542

6.7

-16.0

Others

4,737,196,847

37.9

4,537,261,457

34.7

4.4

Total

12,508,818,106

100.0

13,091,592,596

100.0

-4.5

Source: Gartner (June 2017)

In server shipments, Dell EMC secured the No. 1 position in the first quarter of 2017 with 17.9 percent market share (see Table 2). The company had a slight increase of 0.5 percent growth over the first quarter of 2016. Despite a decline of 16.7 percent, HPE secured the second spot with 16.8 percent of the market. Inspur Electronics experienced the highest growth in shipments with 27.3 percent.

Table 2: Worldwide: Server Vendor Shipments Estimates, 1Q17 (Units)

Company

1Q17
Shipments

1Q17 Market Share (%)

1Q16
Shipments

1Q16 Market Share (%)

1Q17-1Q16 Growth (%)

Dell EMC

466,800

17.9

464,292

17.1

0.5

HPE

438,169

16.8

526,115

19.4

-16.7

Huawei

156,559

6.0

130,755

4.8

19.7

Lenovo

145,977

5.6

199,189

7.3

-26.7

Inspur Electronics

139,203

5.4

109,390

4.0

27.3

Others

1,254,892

48.2

1,286,097

47.4

-2.4

Total

2,601,600

100.0

2,715, 138

100.0

-4.2

Source: Gartner (June 2017)

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