Gartner: Semiconductor and server shipments grew in Q3, but server revenue fell

The analyst attributes the growth of semiconductor revenue to DRAM
Publish date:
Social count:
The analyst attributes the growth of semiconductor revenue to DRAM

Gartner has released its data for Q3 2013, showing a boost in semiconductor and server shipments, but with overall server revenue down.

The analyst attributed the 5.2 per cent growth of semiconductor revenue, which it predicts will reach $315.4 billion (£193.1 billion) in 2013, to DRAM, rather than computer sales.

"After a weak start to 2013 due to excess inventory, revenue growth strengthened in the second and third quarters before leveling off in the fourth quarter,” explained Andrew Norwood, research vice president at Gartner.

“Memory, in particular DRAM, led this growth, not due to strong demand, but rather weak supply growth."

"In fact, the overall market faced a number of demand headwinds with PC production declining nine per cent and the premium smartphone market showing signs of saturation, with growth tilting toward lower-priced, entry-level and midrange smartphone models.”

“These demand headwinds become very visible when looking at revenue growth outside of memory, where the rest of the semiconductor market could only muster 0.4 per cent growth."

The biggest semiconductor vendor for 2013 continued to be Intel, with Samsung and Qualcomm in second and third place, respectively.

For server vendors, while 2013 successful in terms of shipments, increasing by 1.9 per cent in Q3 2013 compared to 2012, revenue fared less well, dropping by 2.1 per cent.

HP was the most successful server vendor during Q3 2013, seeing 2.2 per cent growth, followed by IBM and Dell, who both saw a fall in shipments and revenue – Dell losing 18.9 per cent year-on-year.

"The worldwide server market remains in a relatively weak performance mode as we move through the second half of the year," said Jeffrey Hewitt, research vice president at Gartner.

"There were only three regions that exhibited positive vendor revenue growth. They were Canada at 6.5 per cent, the Middle East and Africa at 12.1 percent and the United States with 0.9 per cent growth.”

“In shipments, the Middle East and Africa had the greatest increase at 13 per cent compared to the third quarter of 2012.”

Image of graph courtesy of