4Q99 Worldwide Server Market Revenues Declined 6% From 4Q98, IDC Says.

The latest quarterly server data from IDC indicates significant weakness in the worldwide market for servers for 4Q99. Figures from 4Q99 show total factory revenue declining six percent to $14.9 billion compared to 4Q98. A significant revenue weakness, due largely to Y2K, was felt throughout the market. Howeve3r, one bright spot occurred in the entry server market, which posted a modest gain of two percent to $7.9 billion in 4Q99 over 4Q98. The midrange and high-end server markets declined six percent and 27 percent to $4.5 billion and $2.5 billion, respectively.

"4Q99 was a weak quarter for the server market. The server market was mixed with Y2K system spending lockdown, price erosions, and product delays," says Hoang Nguyen, senior research analyst for IDC's Worldwide Quarterly Server Tracker.

4Q99 Worldwide Highlights:

* Despite the weak quarter, the Asia/Pacific (excluding Japan) server market had robust growth of 40 percent to $1.4 billion from 4Q98.

* Japan's server market posted a sharp decline of 20 percent year over year as Y2K hit hard in its midrange and high-end markets and stopped any recovery momentum.

* Intel-based architecture systems continued to grow in the wake of the slowdown, posting a solid six percent growth year over year.

* The top-five server vendors earned 73 percent of the market's revenues, up from 67 percent in 4Q98 - pointing to continued consolidation in the market.