The worldwide server market increased 4.4% year over year to $19.8 billion during 1Q19, according to IDC’s Worldwide Quarterly Server Tracker.
Worldwide server shipments declined 5.1% year over year to just under 2.6 million units in 1Q19.
Some highlights from IDC:
- The overall server market slowed in 1Q19 after experiencing six consecutive quarters of double-digit revenue growth although pockets of robust growth remain.
- Volume server revenue increased by 4.2% to $16.7 billion, while midrange server revenue grew 30.2% to $2.1 billion.
- High-end systems contracted steeply for a second consecutive quarter, declining 24.7% year over year to $976 million.
“Demand from both enterprise buyers and hyperscale companies purchasing through ODMs was less voracious than in previous quarters; coupled with a difficult compare period from a year ago, this impacted the pace of market growth during the first quarter,” said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. “This was most evident in declining unit shipments during the quarter, although year-to-year average selling price (ASP) increases supported revenue growth for many vendors. As long as demand for richly configured servers supports further ASP growth, the market will offset slight declines in unit volume.”
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