Server Quarterly Shipments Down Nearly 14% / ServerNews

World deliveries of servers in the first quarter of 2023, according to estimated DigiTimes Research, decreased by 13.8% compared to the last quarter of 2022. The final result was less than 4 million units. Thus, shipments fell short of analysts’ expectations.

It is noted that several factors had a negative impact on the market. These are, in particular, macroeconomic challenges and high inflation. Against the backdrop of the current situation, major cloud providers in the United States have revised their plans to create new data centers, and the volume of orders for servers in the corporate segment has decreased.

  Image Source: Microsoft

Image Source: Microsoft

Leading hyperscalers including Meta* and Amazon, have significantly reduced the number of orders in the first quarter of 2023. At the same time, corporate clients in developed regions have significantly reduced their purchases of servers for local installation. Because of this, sales of Dell and HPE equipment collapsed by double digits. In China, due to US sanctions and the stagnation of the development of the digital economy, the supply of servers for the data center also decreased quarterly.

DigiTimes Research predicts that in the second quarter of this year, growth in shipments of server hardware on a quarterly basis will be insignificant – less than 4%. Expected that Meta* will continue to reduce purchases, while Microsoft и Google may increase server orders for AI projectsbut their impact on the market as a whole will be limited.

* It is included in the list of public associations and religious organizations in respect of which the court has made a final decision to liquidate or ban activities on the grounds provided for by Federal Law No. 114-FZ of July 25, 2002 “On counteracting extremist activity”.

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