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HP Retakes Server Lead
Hewlett-Packard reclaimed its server crown from IBM last quarter as the overall market contracted and Taiwanese vendors made big gains selling directly to Internet giants like Google and Facebook, according to an IDC report.
HP expanded its share of the market only modestly from a year earlier but IBM’s portion declined 4.5 points despite solid mainframe sales, to leave HP in the top spot. HP finished the third quarter with 28.1% of worldwide server revenue to IBM’s 23.4%, IDC said.
But the strongest growth was for the “ODM direct” segment which IDC broke out for the first time this quarter. It stands for original design manufacturers, which are Taiwanese firms like Quanta Computer, Wistron Group, Inventec and Compal, which sell partial and fully-built servers to the big cloud providers.
It’s a growing segment and one that threatens the incumbents. ODM’s accounted for 6.5% of server revenue last quarter, up 45.2% from a year earlier, IDC said. If the ODM category were a single vendor, it would be the third largest ahead of Dell.
Almost 80% of the ODM’s server revenue came from the U.S., primarily from sales to Google, Amazon, Facebook and Rackspace.
Overall, the server market declined 3.7% from a year earlier to $12.1 billion. It was the third consecutive quarter of declining revenue but IDC predicts improvement with a refresh cycle early next year. In terms of units shipped, volumes were about flat year over year, meaning average selling prices dropped.
Volume systems — mostly x86 servers — picked up slightly from last year, with 3.5% revenue growth. But sales of midrange and high-end systems dropped 17.8% and 22.5%, respectively, IDC said.
IBM fared worst of the top 5 vendors, with revenue down 19.4% due to “soft demand for System x and Power Systems,” IDC said. Dell retained third place with 16.2% of revenue, about flat from last year, while Cisco Systems and Oracle tied for fourth.
Cisco saw the most growth of the top vendors, with a nearly 43% revenue jump, IDC said.
Are Microsoft and Intel Having Issues?
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Intel’s delayed software that conserves battery life is holding up development of some tablets running the latest version of Microsoft Windows.
Bloomberg said that Mirosoft hasn’t yet approved any tablets featuring an Intel processor codenamed Clover Trail because the chipmaker hasn’t produced necessary power-management software. This sort of news follows a statement by Intel Chief Executive Officer Paul Otellini that Windows 8 was not really ready to ship.
Alex Gauna, an analyst at JMP Securities LLC in San Francisco said that the PC channel is in chaos right now with no one knowing what to do. He said that the people don’t know what to design for, as they don’t know what the consumers are going to buy. Tablets have stolen their growth trajectory, plus the macro situation, plus Wintel has made a mess of their ecosystem.
PC makers, including HP, Dell and Lenovo Group Ltd. (992), are counting on the new version of Windows to help them compete in the $63.2 billion tablet market.
Apple’s Patent Hints At Tablet-Macbook Hybrid
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Apple has received approval from the U.S. Patent Office this week for a patent for a MacBook with a cellular antenna and a rotating display. Such a MacBook could have the super thin qualities of the MacBook Air and the cellular connectivity and touchscreen versatility of the iPad.
It could also strengthen Apple against the onslaught of Ultrabooks that PC makers are gearing up to unleash. “This officially announces to the Wintel camp that Apple now has the ability to match or beat the Ultrabook design that is to come to market in 2013 with the [Intel] Haswell processor,” declared Jack Purcher, of Patently Apple.
Intel announced the Ultrabook category of PC laptops in May. The line is squarely aimed at the MacBook Air. The first wave of Ultrabooks, based on existing Intel processors, has already begun to hit the market. The units are supposed to be priced under $1000 and be super thin–0.78 inches–or in the case of the HP Folio announced today, even less–0.70 inches.
Next year, the platform is expected to be advanced further with the introduction of units based on Intel’s Ivy Bridge processor. A third wave of Ultrabooks is planned for 2013. They would be based on the Haswell processor and consume half the power of today’s laptops. Some of them also will sport Windows 8 with its touchscreen-enabled Metro interface.
Best Buy Stuck With TouchPads
Best Buy is sitting on a boatload of 200,000 HP Touchpads and wants to send them back to HP.
According to Allthingsd, Best Buy stocked its warehouses with around 270,000 HP Touchpad tablets. However, the retailer has been unable to sell the tablets and has only sold at most 25,000, even with a $100 discount, so Best Buy is requesting that HP take back all of the unsold devices.
Furthermore, it is being said that things are so bad that HP EVP Todd Bradley might have to go to Best Buy’s headquarters and plead with executives to exercise patience. It appears that the Touchpad is suffering from poor sales in many stores across the country, with Wal-Mart also said to be an unhappy camper.
Update…HP will stop making the HP Touchpads…….
iPad Rivals Have Better Chance In Europe
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Would-be rivals to Apple’s iPad have a better chance in Europe than they do in the United States, but they need to drop prices fast to grasp the opportunity, IT research firm Forrester said on Tuesday.
Apple’s relatively small retail presence in Europe — with 52 stores compared with 238 in the United States — offers a chance to the likes of Samsung, Acer and Research in Motion, Forrester said.
But their prices cannot yet compete with Apple, which has far larger scale in the tablet market and an efficient supply chain. Forrester said emerging challengers from China and Taiwan would likely step in soon with cheaper offerings.
“There is this opportunity for iPad challengers, but the competition is very fragmented. Competing with Apple will require a different approach from what we’ve seen so far,” said analyst Sarah Rotman Epps, the author of the Forrester report.
Apple still has the tablet-computer market almost to itself after launching the iPad a year and a half ago. It has sold close to 30 million iPads, whose prices start at about $500.
Forrester expects Apple to sell 80 percent of all consumer tablets in the United States and 70 percent in Europe this year.
It expects 2011 worldwide tablet sales to reach 48 million units, with half of those sold in the United States, 30 percent in Europe, 15 percent in Asia and 5 percent in Latin America.
Forrester surveyed almost 14,000 online adult consumers in France, Germany, Italy, the Netherlands, Spain, Sweden and Britain, and also interviewed product strategists from manufacturers, telecommunications operators and retailers.
Motorola Xoom Sales Better Than Expected
May 2, 2011 by admin
Filed under Consumer Electronics
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Motorola Mobility shipped 250,000 Xoom tablets in the first month the device was released, the company said on Thursday as part of their first-quarter earnings report.
The tablet, the first to run Google’s Android Honeycomb OS, went on sale in February. Within weeks, several analysts said early sales numbers were disappointing. By early April, one analyst estimated that Motorola had sold a total of 100,000 of the tablets.
Shipping a quarter of a million in a month isn’t quite the same as Apple first iPad shipment, but the number appears to be better than most had expected.
For the full year, Motorola is expecting to sell 1.5 million to 2 million tablets, it said. It plans to introduce new tablets, including some with new form factors, this year, executives said during a conference call to discuss first-quarter results.
During the quarter, Motorola Mobility also began selling the Atrix, a phone that can be docked into a device with a full keyboard and monitor. Some analysts have also said sales of the Atrix are unimpressive.
The company did not release Atrix sales numbers separately. It said it shipped 9.3 million mobile devices, including 4.1 million smartphones, during the quarter.
Motorola expects to record an operating profit for the full year, but faces challenges ahead. It has delayed the launch of the Bionic, its first LTE device, and on Thursday said the delay is related to a software problem. That same problem is also pushing back the launch of LTE on the Xoom, which was initially expected for the first half. Both the LTE Xoom and the Bionic are now expected to come in “summer,” which in North America could be as late as September.