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Global server market, 4Q 2023

Jim Hsiao, DIGITIMES Research, Taipei 0

Credit: DIGITIMES

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Based on DIGITIMES Research's statistics, fourth-quarter 2023 global server shipments grew 3.1% from the prior quarter, coming somewhat short of expectation.
Abstract

After experiencing a sequential growth of 3.1% in the fourth quarter of 2023, first-quarter 2024 global server shipments are expected to climb another 1.7% sequentially and resume on-year growth.

Leading US-based cloud service providers were keen on AI server purchases in second-half 2023, which squeezed their budget for general-purpose servers. Going into first-quarter 2024, they are set to start a new round of purchases for general-purpose servers, giving rise to brisk server sales despite the traditional slow season.

High interest rates still made enterprises conservative toward their IT infrastructure deployment in fourth-quarter 2023. Although the shipments of new x86-based servers by server brands such as Dell and HPE continued to trend upward, their high costs and enterprises keeping old servers in operation for longer resulted in a slower turnover compared to the previous generation.

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