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External Storage System Sales: IBM, Huawei Grow; Dell, HPE, NetApp Plummet

IDC reports that robust mainframe sales during the second quarter gave IBM a big storage boost, while the recovery of China from the worst of the pandemic pushed Huawei sales up nearly 50 percent. Dell, HPE and NetApp, meanwhile, saw double-digit declines.

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5. Huawei

China-based Huawei was the real bright spot in the second quarter‘s enterprise external OEM storage system sales with solid 47.6 percent year-over-year growth in revenue to $481.5 million. That is an impressive number given that because of U.S. government concerns, Huawei sells little if any enterprise storage systems in the crucial U.S. market.

However, IDC’s Lagana said, that growth was due primarily to Huawei‘s home market of China, which is the only market, along with much smaller Canada, that grew during the quarter. Lagana said IDC estimates that China’s enterprise storage systems market grew a healthy 18 percent.

The key to understanding how that happened is to remember that the COVID-19 pandemic started in China during the first calendar quarter of 2020, Lagana said.

“Consumers there locked down purchases,” he said. ”And then the supply chain was locked down. So there was a lot of pull-through in the second quarter of sales from the previous quarter. And on the supply side, factories in the second quarter were running as much as they could.”

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