Electronics Production | May 31, 2006
Server Shipments Decline in 1Q06 in EMEA, Says IDC
The server market in Europe, the Middle East, and Africa (EMEA) suffered a year-over-year factory revenue decline of 4.3% in the first quarter of 2006, according to IDC's EMEA Quarterly Server Tracker findings.
Sales of servers in EMEA totaled $3.8 billion in 1Q06, down from $4.9 billion in 1Q05. Shipments declined by 8.8% year on year, reaching 567,660 units compared to the record 676,849 units experienced in the same quarter a year ago. "The data confirms that there is a trend towards the commoditization of the server market, with lower prices resulting in smaller profit margins," said Beatriz Valle, research analyst, IDC European Enterprise Server Solutions. "Volume systems are offering improvements in performance and scalability, becoming a viable option for a wider range of vertical markets. Companies are modifying their IT spending patterns, as technological improvements make it possible to strategically plan server purchases to address specific business needs, and to enhance existing hardware rather than buying new systems." The Central and Eastern Europe server market recorded the strongest growth in the region for the fourth consecutive quarter, displaying annual growth rates of 13.9% and 28.1% in factory revenue and shipments respectively. "These strong results reflect an increase in server demand from vertical markets such as finance, while private and public investments in this geopolitical area continue to fuel growth," said Stefania Lorenz, program manager, Hardware and Systems group, IDC. The Middle East and Africa benefited in 1Q06 from channel and vendor backlogs that had contributed to worse-than-expected results during the previous quarter. Factory revenue grew at an annual rate of 12%, and shipments grew 9% year over year. Following the same pattern seen throughout 2005, annual growth in the Western European region was the slowest, with a decline of 7.1% in factory revenue and a growth rate of 6.4% in shipments. Despite an increase in server shipments, the drop in factory revenue indicates that volume servers, which are largely benefiting from replacement cycles, are failing to alleviate the slowdown currently suffered by midrange and high-end segments. HP gained the leadership position in the EMEA server market from IBM in 1Q06; HP's revenue totaled $1,276 million, and IBM's $1,179 million. Sun Microsystems was third in revenue terms with $406 million, recording a decline of 1.5% from a year ago, followed by Fujitsu Siemens. Dell also generated revenue growth, narrowing the gap with Fujitsu Siemens this quarter.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.
PCB manufacturer SQP invests in new plasma treatment system As part of the continuous upgrade of the PCB manufacturing processes the Slovakian PCB manufacturer SQP International has invested in a new plasma treatment system.
Nordson delivers solid quarter considering COVID-19's impact on global end markets Nordson Corporation reported second quarter sales of USD 529 million, a 4% decrease compared to the prior year’s second quarter sales of USD 551 million.
Cicor expands its clean room set up in Bronschhofen Swiss EMS provider Cicor Group is currently expanding its site in Bronschhofen with a 60 square metre ISO Class 6 clean room.
Senate Dems to Trump: Release details of TSMC plant deal Democratic lawmakers are pressuring the Trump administration to respond to serious questions about Taiwan Semiconductor Manufacturing Co Ltd’s (TSMC) plans to build a USD 12 billion plant in Arizona, which the company announced last week.
SOS LAB completes series A+, inks MOU with ON Semi LiDAR sensor maker SOS LAB has secured series A+ investment funding of USD 8 million as of April.
Expanded US rules sanctioning Huawei to have little impact on memory industry TrendForce believes that the latest updates to the sanctions will have a relatively low impact, in the short term, on Huawei’s shipment of smartphones, notebook computers, and servers – products for which Huawei is relatively well stocked on components.
PCB Connect expands with new office Due to the PCB suppliers’ successful growth in Denmark, the company has now decided to invest further in the Danish Market.
Panasonic, Tesla discuss beefing up Nevada battery plant Panasonic Corporation this week said strong demand for battery cells from its U.S. partner, Tesla, has led to negotiations on the expansion of their joint plant in Storey County, Nevada.
Flex taps new leadership for automotive business Flex has named Mike Thoeny, president, Automotive Business Group, effective June 1, 2020.
Current pandemic slows down business development in German component distribution German distribution of electronic components (according to FBDi e.V.) continues to decline in the first quarter of 2020. The order situation improves slightly, at a low level. The FBDi calls for future-oriented course-setting and investments in infrastructure.
Progress is being made for BMW’s new plant in Hungary Preparations for the future BMW Group plant in Debrecen, Hungary, have reached important milestone. Following successful preparation of the land by the City, the official handover process has now started.Load more news