Gartner Says Latin American Server Shipments Grew 7 Percent in Second Quarter of 2003, but Server Revenue Experienced Slight Decline
STAMFORD, CONN., September 3, 2003 — Driven by strong sales in the IA32 segment, Latin America server shipments grew 6.6 percent to 35,359 units in the second quarter of 2003, according to Gartner, Inc. (NYSE: IT and ITB). However, because mainframe shipments were low, server revenue in Latin America declined 1.8 percent, to $312 million.
"Hewlett-Packard, IBM and Dell continued to grow their market share, weakening the position of the smaller vendors. These vendors experienced strong growth in the IA32 segment, affecting competitors in terms of price, service and reliability," said Lillian Alvarado, senior industry analyst covering servers for Gartner's Computing Platforms Latin America group.
The top three vendors accounted for 69 percent of all server shipments in Latin America in the second quarter of 2003 (see Table 1), up from 60.9 percent market share in second quarter of 2002.
Table 1
Latin America Server Vendor Unit Shipment Estimates for 2Q03 (Units)
Company
2Q03 Shipments
2Q03 Market Share (%)
2Q02 Shipments
2Q02 Market Share (%)
Growth (%)
Hewlett-Packard
10,405
29.4
9,351
28.2
11.3
IBM
7,422
21.0
6,588
19.9
12.7
Dell
6,590
18.6
4,260
12.8
54.7
Sun Microsystems
1,356
3.8
745
2.2
82.0
Alaska
1,193
3.4
1,329
4.0
-10.2
Others
8,393
23.7
10,909
32.9
-23.1
Total
35,359
100.0
33,182
100.0
6.6
Source: Gartner Dataquest (August 2003)
Despite a 14.8 percent decline in revenue, IBM was the top vendor in server revenue, with 38.7 percent of the market (see Table 2). HP was the No. 2 vendor, followed by Sun Microsystems, Dell and Unisys. Sun experienced the largest growth in server revenue at 39.7 percent.
RISC server revenue increased 4.6 percent, as HP and Sun enjoyed strong gains, particularly in Mexico. Shipments of RISC servers grew at a lower rate of 1.5 percent, due to a slight shift toward servers in the medium-to-high-end segment in the second quarter of 2003.
Table 2
Latin America Server Vendor Revenue Estimates for 2Q03 (Thousands of Dollars)
Company
2Q03 Revenue
2Q03 Market Share (%)
2Q02 Revenue
2Q02 Market Share (%)
Growth (%)
IBM
120,781
38.7
141,722
44.6
-14.8
Hewlett-Packard
96,651
31.0
85,920
27.0
12.5
Sun Microsystems
29,360
9.4
21,009
6.6
39.7
Dell
27,288
8.7
22,326
7.0
22.2
Unisys
6,146
2.0
6,350
2.0
-3.2
Others
31,987
10.2
40,499
12.7
-21.0
Total
312,213
100.0
317,826
100.0
-1.8
Source: Gartner Dataquest (August 2003)
"IA64 servers showed a large increase of 203.8 percent in Latin America during the second quarter of 2003," Alvarado said. "Though they are not significant in the total units shipped, there is a growing interest in this new technology. HP was the main vendor in this segment, which also included the local Brazilian vendor, Itautec, through the development of clusters for scientific applications."
This information is produced by Gartner's Computing Platforms Latin America group. The group provides research on key aspects of the dynamic PC, server and printer hardware markets in Latin America. The focus is on regional and country issues in the top eight Latin American markets and the Rest of Latin America (ROLA) category, where Central American and Caribbean countries are grouped. To subscribe to this program, please call 408-468-8000.
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