Egyptian server market grows to $53.22 mln

The Egyptian server market grew 23.9% in volume and 43.2% in value YoY to 6,822 units worth $53.22 mln.

The stronger value than volume growth can be attributed to strong sales of midrange and high-end servers. The growth was seen across all market segments. Volume server shipments grew 23.7% and customer revenue grew 35.3% YoY in 2006, to account for 97.1% of total shipments and 52.7% of total revenue. Sales of midrange servers grew 30.8% in units and 51.9% in revenue, while those of high-end servers increased 100.0% in volume and 55.7% in revenue. x86 servers (including x8632 and x86-64 processors) led the Egyptian enterprise server market in 2006 with 95.1% unit share and 50.5% value share. 64-bit servers led the x86 server market based on shipment of 4,906 units for $22.54 mln, thanks to their attractive price/performance ratio.

IBM ranked first in customer revenue and recorded YoY growth of 4.2% in revenue a 14.8% in units. HP led in shipments.

The vendor recorded YoY growth of 79.8% in revenue and 13.8%, due to sales of high-end systems. Dell retained third place with shipments grew 64.6% and its revenue grew 71.7%. The vendor’s market share increased to 6.0% in volume (compared to 0.24% in 2005) and to 2.5% in revenue (from 0.16%).

Non-rack optimized servers continued to dominate the Egyptian systems and servers market in 2006, although this segment grew slower than rack-optimized servers, increasing 21.3% in volume and 37.6% in customer revenue YoY.

Rack-optimized servers grew 59.9% in revenue and 23.3% in volume. The growth was mainly due to stronger sales in the $50,000-$99,999 and $100,000-$249,999 price bands. Blade server shipments doubled YoY while revenue from these machines increased 25.5%. The slower revenue growth was caused by a strong increase in sales in the lowest (<$2,999) price band.