Apple: ‘this has been a fantastic year’ for Xserve, quarterly sales more than doubled over last year

“Apple Computer Inc. more than doubled its quarterly sales of its Xserve G5 servers over the last year, according to a report by Gartner Inc. In a recent report on worldwide server sales, the Gartner data tracked a 119 percent increase in Xserve G5 sales between the second quarter of 2003 and the second quarter of 2004,” Daniel Drew Turner reports for eWeek.

“However, the Stamford, Conn.-based information technology research company’s numbers showed Apple far behind other computer companies in total number of server sales,” Turner reports. “Where top company Hewlett-Packard Co., which in the last few years acquired Digital Equipment Corp. and Compaq Computer Corp., delivered almost 466,000 server units in the third calendar quarter of 2004, Apple sold approximately 11,150 units of its Xserve G5. (According to Apple, just over 13,000 Xserve servers shipped that quarter; the Cupertino, Calif., company does not usually release Xserve sales numbers.)”

“According to Mike McLaughlin, a principal analyst at Gartner, who contributed to Gartner’s ‘Preliminary Shipment Estimate: Worldwide Server Market, 3Q04’ report, Apple’s Xserve ‘has a good niche’ primarily in the graphic design and digital video sectors,” Turner reports. “‘We don’t expect anything significant to come out of Apple’s server move,’ he said, noting that Gartner doesn’t foresee the Xserve reaching sales in the hundreds of thousands. ‘We see the Xserve as selling to traditional Apple customers,’ McLaughlin said, though he added that the company does have opportunities in the SMB (small to midsize business) market.”

“Alex Grossman, Apple’s director of server hardware, said ‘this has been a fantastic year’ for Xserve sales, adding that he has seen ‘growth in all traditional areas’ such as creative and SMB sales. He noted that Gartner’s estimates were low, though he also pointed to how supplies of the Xserve G5 were constrained well into Apple’s third quarter of 2004. Apple’s third financial quarter coincides with the second calendar quarter of the year; Gartner’s report marks quarters by the calendar year,” Turner reports.

Full article here.

Related MacDailyNews articles:
Report: Apple Xserve shipments grow 119 percent year over year – November 15, 2004


  1. The sad part is, if IT people would take a serious look at them they’d sell like hotcakes. I think the XServe could have a halo effect similar to the iPod if IT would give it an opportunity. Idiots.

  2. ‘We don’t expect anything significant to come out of Apple’s server move…’

    I don’t get it. Business likes the “cheap” Wintel solution for computers, but doesn’t like the cheap server solution from Apple? What am I missing?


  3. Apple now have the hardware and OS that look and work like a server should do.

    It takes several years to get traction in a new market. Just look at how long the ipod took to become a superstar and that was with few competitors.

    If Apple double or triple their sales in the next few years, then people will start to take notice.

    Apple’s only problem is that the machines will probably last a long time and won’t have to be replaced frequently ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  4. quote:

    “Wow, considering the sold half of them to Virginia Tech, it looks like sales of Xserve are flat.”

    Dude you have fuzzy math. 1500 is not 50 % of 11000. Did you used to work in the accounting dept at Enron?

    Still the opportunities for cluster sales are huge for Apple.

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