x86 servers up 7% in Q4 2006

Growth in the x86 server market accelerated slightly in Q4 2006, growing 7.0% in the quarter to $7.2 bln worldwide, its fastest growth rate in five quarters. However, unit shipment growth continued to moderate, growing a modest 1.1% YTY to 1.85 mln servers as customers continued to consolidate their IT infrastructures. IBM, HP and Sun were the only top 5 server vendors to outgrow the market in Q4 2006 ? growing factory revenue 7.8%, 8.2% and 85.8% respectively ? and gaining x86 market share in the process. HP led the market with 33.9% revenue share and IBM and Dell tied for second place with each vendor securing 20% revenue share. For the full year 2006, worldwide x86 server revenue grew 5.2% to $25.8 bln, while worldwide x86 unit shipments grew 7.4% to 6.9 mln units.