India Server Market Shipments Continue To Decline In Q4

The India x86 Server shipments for the fourth quarter of 2011 (4Q 2011) continued to decline both from a sequential and an annual perspective. Unit shipments dropped sequentially by over 9 percent in comparison to previous quarter (3Q 2011). While factory revenues grew notably on a sequential basis, the revenues declined by 5.6 percent when compared to the year ago numbers. Revenues from the Non-x86 server shipments declined sharply to the tune of over 29 percent on a year-on-year basis.

IBM leads the overall India Server market with 32.8 percent factory revenue share closely followed by HP with 28.1 percent share for 4Q 2011. While IBM’s revenues declined from an year-on-year perspective, the vendor’s revenues grew sequentially, and IBM also managed to increase its Non-x86 revenue market share significantly. HP’s revenues declined both in the x86 and Non-x86 segments. The top 4 players, including IBM, HP, Dell and Oracle cumulatively held 90.6 percent of the total market in 4Q 2011. Madhan Dhandayutham, Research Manager, IDC commented, “Server shipments continued to plummet in the entry level x86 models in 4Q 2011, thanks to high dollar conversion rates and, challenges with hard disk availability & pricing. The Non-x86 market also witnessed sharp de-growth in revenues”.

x86 Industry Standard Server Market Dynamics

x86 shipments was the worst affected in the entry models during 4Q 2011. Overall, shipments dropped by over 9 percent vs. prior quarter, and by over 17 percent vs. last year. Dell’s shipments rose sharply during the quarter, as the vendor managed to tie along with HP to achieve the market leadership position. HP and Dell jointly held the number one position (tie) in terms of unit shipments followed by IBM.