Global server shipments are forecast to fall 9% sequentially in the fourth quarter of 2018 due partly to the impact of the US-China trade war, Digitimes Research estimates.
Shipments rose only slightly to four million units in the traditional peak season in the third quarter, as buyers already had made significant purchases in the second quarter, and were less eager to place orders during the industry's transition to new platforms. The transition factor is seen to keep playing a role in affecting shipment performance in the fourth quarter, Digitimes Research's latest server tracker report shows.
The world's three major server vendors Dell, HPE and Super Micro all saw their shipments for the third quarter stay flat or decline slightly on quarter. But server shipments to large-size datacenters remained the major growth driver, posting a sequential increase of 11% in the quarter.
Shipments for the fourth quarter were originally estimated to see a significant sequential growth, but most major customers are expected to reduce their purchases in the fourth quarter to minimize the impact of the fast escalating US-China trade conflicts, which will result in a sequential drop of 9% in global server shipments, Digitimes Research indicates.
Nevertheless, global server shipments for the whole of 2018 will continue to grow, but at a lower-than-expected annual pace of 10.5%. Shipments are expected to remain in a low gear in the first quarter of 2019, but are likely to regain growth momentum in the second quarter.