Trade Resources Industry Views US Server Vendors See Growing Threat From China Competitors

US Server Vendors See Growing Threat From China Competitors

With the server market's rapid growth and the China government's aggressive efforts to build up the country's server industry, China-based server brand vendors have all seen their annual shipment growths surpassing 50% in the past few years. As Lenovo completed the acquisition of IBM's server business in September of 2014, Digitimes Research expects the strong growth to continue in 2015.

Combined server shipments from China's top-3 local server brands (Lenovo, Huawei and Inspur) will likely reach two million units in 2015, surpassing Dell, currently the second largest server vendor worldwide.

With IBM's shipment volume, Lenovo's server shipments are estimated to break one million units in 2015, while Huawei and Inspur are both expected to ship over 400,000 units in the year, up from above 300,000 units in 2014. Dell is estimated to ship about 1.9 million servers in 2015.

Hewlett-Packard (HP) is expected to suffer an over 10% on-year drop in server shipments in 2014 and if the vendor is unable to stop the decline in 2015, the company may also be surpassed by these China vendors.

Digitimes Research expects these China-based vendors to individually make it to the global top-5 rankings in 2015, and their combined share of worldwide shipments will rise from 11% in 2014 (IBM's volume will be included into Lenovo's shipments starting fourth-quarter 2014) to 19% in 2015.

Source: http://www.digitimes.com/news/a20141215VL200.html
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Digitimes Research: US Server Vendors See Growing Threat From China Competitors