Workstation market shipment Increased 20% year over year

The workstation market is thriving. In Q2, we’d reported results as inspiring. In Q3, we raved about results even better than the prior quarter, record-setting in fact. In Q4, we’re going to take that positive commentary up another notch. If a mature market like this one can be said to have a “blowout” quarter, then this would be it.


With total shipments of around 1.23 M units, the worldwide market for workstations grew at 20.1% year over year (with revenue close behind at 18.6%). The quarter not only set another record in units, but the 20.1% growth is at a level we haven’t seen since 2010. And it’s worth noting, 2010’s growth numbers were not very representative of real conditions, since they were measured relative to levels of 2009, when virtually all markets worldwide had bottomed in the depths of the Great Recession. If we ignore 2010’s recovery, the fourth quarter’s YoY growth beat all previous quarters all the way back to early 2006. 

HP pulls ahead in market share

Dell and HP ended the third quarter of 2016 in a virtual dead heat. And in Q4, Dell posted strong gains to contribute to those overall market gains. But HP shone even brighter in the quarter, posting the largest growth to post 37.3% of the overall market (or 42.1% when including Tier 1 vendors only) and opening up a 2.4 point share gap over Dell. So for one quarter, at least, HP is back as leader of the workstation market. Though, given recent dynamics in the market, one quarter’s results is no indication that the position will be a long term one.


In terms of units, Lenovo also grew volume in the fourth quarter. But its gains were more modest compared to HP and Dell, and as a result its share dropped from 15.0% to 14.0%.  Fujitsu and a host of smaller Tier 2 players and system integrators (SIs) chip in another 2.2% and 11.3%, respectively. 


 Workstation vendor market shares for Q4'16

 

The JPR Workstation Report Market Quarterly for Q4'16 delves into comprehensive depth across all slices of the workstation and professional GPU market, including:

  • Complete breakdown of traditional workstation market by units and revenue, and across product classes (mobile/entry/mid/high), platforms (mobile/entry/mid/high) and geography
  • Workstation market forecast
  • Complete breakdown of workstation GPU market by units and revenue, and across product classes
  • Breakdown of workstation market by vertical
  • Analysis and sizing of the impact of Apple platforms versus Windows/Linux workstations
  • Analysis and sizing of the impact of emerging workstation virtualization (in its multiple forms)
  • Analysis and sizing the impact of Intel's CPU-integrated graphics
  • Methodology
    • Some – but not all - white-box coverage
    • Navigating to new content: bold PDF bookmarks and yellow highlighted headings
  • Yet another workstation market record in Q4’16 .. though some tempering might be in order
  • Micro-level fluctuations difficult to predict, but big picture consistent with expectations
  • Surge coming from same two sources: mobiles and China
    • Workstation ASPs and revenue
    • Workstation shares by machine class
      • Mobiles growing slowly/ steadily, but desksides still rule the workstation market
        • Workstation market by vertical
        • Dell and Lenovo also gain, but HP makes the biggest statement in Q4
        • Vendor penetration by market segment
  • Apple's MacPro
  • Estimating Mac Pro shipments: the expected surge at launch, followed by a decline, and now starting to settle out
  • Virtual Workstations
  • Today, Intel stands virtually alone as CPU supplier to the workstation industry
    • Intel's push of Xeon brand into single-socket, entery-class workstations paying off
    • AMD's traveled a winding road in workstations, one that led to an absence in CPUs
    • A future for AMD workstations with APUs? Zen?
    • Single vs. multi-socket CPU
  • Windows dominates, with Linux holding minority share
  • Tier 1 distribution of workstations by geography
    • Mobile vs. deskside distribution by global geo
    • Dell is claiming back its ownership of the U.S. market
    • Dell makes strides in EMEA as well
    • Dell and HP share lead in APexJ, while Lenovo's share steadily grows
    • HP leads in Japan, while "home team" NEC and Dell duke it out for #2
    • ROW vendor breakdown similar to that of the U.S
    • EMEA and APexJ: breakdowns by sub-region
    • China remains the primary engine for APexJ growth, with Lenovo the primary beneficiary
  • Full-year calendar 2016 results for workstations
  • Market for discrete professional GPUs climbs, but at more modest pace than workstations.
    • Discrete workstation GPU ASPs firm
    • Another quarter of virtually no change in Nvidia vs. AMD GPU market battle
    • Estimating FirePro shipments to Apple
  • Professional graphics hardware market breakdown by product class
  • GPU segment big picture: 2D continues inevitable decline, 3D holds steady, and — lately — a marked, sustained tick up for mobiles
    • High-end and mid-range contribute around two thirds of GPU add-in card revenue
    • Nvidia maintains dominant hold on 2D, Entry 3D and mobile segments
  • Full-year calendar 2016 results for professional graphics hardware
  • Integrated vs. discrete GPUs in workstations..
  • Appendix A: Workstation vendor shares per EMEA sub-region