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Global server market grows as PC and tablet shipments expect to shrink - PC Retail

Global server market grows as PC and tablet shipments expect to shrink

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In this brand new roundup IT Channel Expert will be bringing you details of the state of the global IT and tech market each month.

During August IDC has reported that worldwide server market revenues grew 6.1 per cent in Q2, which the firm says was bolstered by strong demand in the US and Asia/Pacific.

"The recent growth trend in the server market is confirmation of the larger IT investment taking place, despite dramatic change occurring in system software thanks to open source projects such as Docker and OpenStack," said Al Gillen, program vice president, Servers and System Software, IDC.

"While we do anticipate an impact on product mix and potentially on volumes, it is too early in the adoption cycle for these new software products to have a material impact on servers today. In the meantime, the market demonstrated healthy revenue and shipment growth this quarter."

HP captured worldwide market share of 25 per cent in 2Q15 on 7 per cent year-over-year revenue growth to $3.4 billion.

Dell showed year-over-year growth of 5.9 per cent and its nearly $2.4 billion of revenue placed the company in the number 2 position with 17.5 per cent market share this quarter.

IBM retained its number 3 position following its x86 divestiture with $2.0 billion in revenue and 14.8 per cent market share.

Lenovo and Cisco finished the quarter in a statistical tie for the number 4 position.

Despite the growth in the server market, worldwide PC shipments are expected to shrink throughout 2016.

Shipments are expected to fall by 8.7 per cent in 2015 and not stabilise until 2017, according IDC. The latest forecast has growth declining through 2016 – which will make five years of declining shipments.

"Although the shortcomings of the PC business are obvious, a silver lining is that the industry has continued to refine the more mobile aspects of personal computers – contributing to higher growth in Convertible & Ultraslim Notebooks," said Jay Chou, senior research analyst, Worldwide PC Tracker.

"The de-emphasis of touch on Windows 10 also paves the way for a more familiar experience and continuing unit growth on large-screen systems, particularly All-in-One PCs."

Like PC shipments, tablets are also expected to decline worldwide. IDC reports that tablet shipments, inclusive of 2-in-1 devices, are expected to decline -8.0% in 2015, representing a notable slowdown from IDC's previous forecast of 3.8 per cent.

Shipments are now expected to reach 212 million with the vast majority being pure slate tablets.

Image source: Shutterstock

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