Server Shipments for 2H17 to Grow by 10% vs. 1H17 as ODM Orders Bounce
July 12, 2017 | TrendForceEstimated reading time: 1 minute
Global server shipments fell in the first quarter of 2017 due to the seasonal effect on demand, according to the latest server market analysis by DRAMeXchange, a division of TrendForce. However, shipments rebounded in the second quarter and rose by about 10% compared with the first quarter. Looking ahead, DRAMeXchange estimates that total shipments for the second half of 2017 will also increase by 10% compared with the first half owing to demand from major technology companies including Google, Amazon, Facebook and Microsoft.
DRAMeXchange analyst Mark Liu pointed out that Greater China accounted for the majority share of the global server shipments in the first half of 2017 because of demand from the region’s data center operators. As a result, Chinese server ODMs such as Huawei, Inspur and Sugon posted stronger-than-expected shipments for the period.
HPE, Dell and Lenovo remained as the top three vendors in shipment market share for this year’s first half
Hewlett Packard Enterprise (HPE), Dell and Lenovo were, in order, first-, second and third-place in the global server shipment ranking for this year’s first half, respectively taking 18.1%, 17.5% and 6.4% of the total market share. The top three vendors mainly shipped enterprise server solutions during this year’s first half. Going forward, however, a portion of their shipments for this year’s second half will be for data centers in the U.S. and for replacement demand generated by the releases of new servers using Intel’s Purley platform. DRAMeXchange also expects strong shipment growth for the second half of 2017 versus the first half.
“For server ODMs, the largest share of incoming orders for the second half of 2017 will come from Google, Amazon, Facebook and Microsoft,” said Liu. “The next largest source of server demand will be from Greater China, where Baidu, Alibaba and Tencent continue to expand their networks of data centers. The three Chinese technology giants are projected to capture about 10% of this year’s global server shipments.”
DRAMeXchange currently puts the annual growth rate of total server shipments for 2017 at 4%. Enterprise products will still be the mainstream with an estimated total shipment share of 60%. As for data center solutions, they are expected to make up around 30% of servers shipped worldwide this year.
Suggested Items
Avnet Launches QCS6490 Vision-AI Development Kit
05/17/2024 | AvnetThe QCS6490 Vision-AI Development Kit from Avnet enables engineering teams to rapidly prototype hardware, application software and AI enablement for multi-camera, high-performance, Edge AI-enabled custom embedded products.
Nortech Systems Reports Q1 Results and Actions to Reduce Facility Costs
05/17/2024 | BUSINESS WIRENortech Systems Incorporated, a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, industrial and defense markets, reported first quarter ended March 31, 2024 financial results.
Shipments of OLED Monitors Hit 200,000 Units in 1Q24, Annual Forecast to Reach 1.34 Million
05/17/2024 | TrendForceTrendForce’s latest report reveals a robust start to 2024 for OLED monitors, with shipments reaching approximately 200,000 units in the first quarter—marking a YoY growth of 121%.
The ICAPE Group Reports Revenue for Q1 2024
05/16/2024 | ICAPE GroupThe ICAPE Group, a global technology distributor of printed circuit boards (PCB) and custom-made electromechanical parts, announced its revenue for the first quarter of 2024.
Sypris Reports Q1 2024 Results; Revenue Up 10%
05/15/2024 | Sypris Solutions Inc.The Company’s first quarter 2024 consolidated revenue increased 10.1% to $35.6 million compared with the prior-year quarter, representing the 11th quarter of double-digit year-over-year growth during the past 12 quarterly periods.