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Revised server numbers lift IBM and Sun


Thursday, June 5, 2003

Hewlett-Packard's server business declined more than originally thought in 2002, according to revised market-share figures from research firm Gartner. IBM and Sun Microsystems, on the other hand, did better than reported.

IBM also accounted for more server sales than anyone else in the first quarter of 2003, according to the new Gartner figures, which contrast with an IDC report earlier this month that had handed the crown to HP.

An underestimation of HP's worldwide server revenue in the fourth quarter of 2001 prompted Gartner to revise its overall figures for 2002 and its figures for the last quarter of the year. The increase in the 2001 figures meant that HP's numbers for last year were falling from a greater height.

In the fourth quarter of 2002, HP saw its market share decline by 16 percent, rather than 6 percent, as previously stated by Gartner. HP's share of Unix server revenue, a subset of the market, dropped 15 percent, rather than growing by 6 percent.

Under the revised numbers, overall HP server sales was $10.8 billion in 2002, 25.2 percent of the $43.1 billion market.

Sun saw its revenue share of the market decline by 10 percent, rather than 16 percent, as previously believed. Sun accounted for 15.1 percent of the overall server revenue in 2002. As a result of the recount, IBM, the largest server company, saw its 2002 market share climb slightly.

Sun and Dell Computer came in at third and fourth, respectively, in the first quarter, but with an important difference. Sun's market share, as defined by revenue, declined 20 percent, to $1.4 billion, while Dell's market position grew 23 percent, to $938 million.

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