The latest data from Digitimes Research shows that the global server shipments declined 1.6% sequentially in the first quarter of 2021. This is a good indicator given that there is usually a more pronounced seasonal downturn in the first quarter.
In fairness, it should be noted that this time the reduction was preceded by a slowdown in demand in the second half of 2020, and all this is produced against the backdrop of a shortage of semiconductor products.
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Server shipments are expected to grow by about 14% in the second quarter of 2021 compared to the first quarter. This will be driven by an increase in orders from cloud service providers, e-commerce platforms, and enterprises, as well as a trend of replacement driven by Intel’s next-generation server processors.
Fearing shortages of chips and other components, and possible lengthening delivery times, data center operators and server brands have placed more orders with their manufacturing partners. Global server shipments are expected to reach 8.09 million units in the first half of 2021, roughly the same as in the first half of last year.