"Although revenue declined, the first quarter of 2016 continued with a trend of low-level shipments growth on a global level with a variation in results by region," said Jeffrey Hewitt, research vice president at Gartner. "The drop in revenues in light of shipment increases demonstrates that the servers that shipped during the period had lower average selling prices than those that shipped in the same time frame last year."
All regions showed a decline in either shipments and/or vendor revenue except for Asia/Pacific, which posted 9.7 percent growth in revenue and 8.4 percent growth in shipments for the period. Western Europe grew 1.4 percent in shipments and 1.5 percent in revenue. North America posted a 1 percent increase in shipments but declined 5.9 percent year over year in revenue.
"The real driver of global growth continues to be the hyperscale data center segment. The enterprise and small or midsize business (SMB) segments remain relatively flat as end users in these segments accommodated their increased application requirements through virtualization and considered cloud alternatives," Mr. Hewitt said.
Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market, based on revenue, with a 25.2 percent market share (see Table 1). HPE was the only vendor in the top five to experience growth in the first quarter of 2016. Despite a decline of 1.4 percent, Dell maintained the second spot in the market with 17.3 percent market share. IBM secured the third position with 9.7 percent of the market, but experienced the largest decline among the top five vendors.
Table 1
Company
1Q16 Revenue
1Q16 Market Share (%)
1Q15 Revenue
1Q15 Market Share (%)
1Q16-1Q15 Growth (%)HPE
3,296,591,967
25.2
3,191,694,948
23.8
3.3Dell
2,265,272,258
17.3
2,296,473,026
17.1
-1.4IBM
1,270,901,371
9.7
1,887,939,141
14.1
-32.7Lenovo
871,335,542
6.7
970,254,659
7.2
-10.2Cisco
850,230,000
6.5
890,179,930
6.6
-4.5Others
4,537,261,457
34.7
4,157,871,705
31.0
9.1Total
13,091,592,596
100.0
13,394,413,410
100.0
-2.3
In server shipments, HPE remained the worldwide leader in the first quarter of 2016, even with a year-over-year shipment decline of 1.6 percent (see Table 2). HPE's worldwide server shipment share was 19.4 percent, representing a 0.6 percent drop in share from the first quarter of 2015.
Of the top five vendors in server shipments worldwide, only Huawei and Inspur produced shipment increases.
Table 2
Company
1Q16 Shipments
1Q16 Market Share (%)
1Q15 Shipments
1Q15 Market Share (%)
1Q16-1Q15 Growth (%)HPE
526,115
19.4
534,559
20.0
-1.6Dell
464,292
17.1
507,433
19.0
-8.5Lenovo
199,189
7.3
220,379
8.3
-9.6Huawei
130,755
4.8
105,803
4.0
23.6Inspur
109,390
4.0
91,847
3.4
19.1Others
1,286,097
47.4
1,209,319
45.3
6.3Total
2,715,838
100.0
2,669,340
100.0
1.7
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