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HPE Gains Server Market Share In Heated Battle With Dell

‘The second quarter saw the server market's first contraction in nine quarters,’ says Sebastian Lagana, IDC research manager for Infrastructure Platforms and Technologies.

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1. Dell Technologies

Market Share: 19%

The $91 billion Round Rock, Texas-based infrastructure giant generated the most server sales worldwide during the quarter at $3.8 billion in revenue to capture 19 percent market share. However, those sales represent a 13 percent sales decline year over year when revenue hit $4.37 billion in second quarter 2018. Dell’s market share also slightly fell from 19.3 percent share in second quarter 2018 to 19 percent.

Dell Technologies shipped the most servers during the second quarter with a total of approximately 480,000 shipments, representing 17.8 percent of the total amount of servers shipped in the market. Dell shipped nearly 577,000 servers in the second quarter of 2018, which represents a 16.8 percent year over year decline.

For Dell’s recent second fiscal quarter 2020, the company reported a 12 percent drop in servers primarily due to issues in the China market. Without the China impact, Dell Technologies estimated that its server business would have increased 1-percent year over year.

“We have a good relationship and a good business there, but clearly the U.S.-China trade tensions are a bit of an overhang on the business,” said Tom Sweet, chief financial officer of Dell Technologies, during the company’s first quarter earnings conference call in May. “We did see more competitiveness in the market, principally in the server space.”

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