Coronavirus Destroys The Server Market

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The number of servers shipped this quarter is likely to fall by almost ten percent. Production is compromised by the coronavirus.

 

There will be a worldwide drop of 9.8 percent in the number of servers shipped compared to the fourth quarter of 2019. The company initially expected a slight increase of 1.2 percent.

Compared to the first quarter of 2019, this is still an increase of 22.9 percent, although this was initially 37.9 percent. But that is because the server market in the first half of 2019 did much worse due to the US trade rates. That is why many companies bought more servers at the end of 2018.

Digitimes emphasises that there is still significant demand for servers, especially from major players such as Facebook and Microsoft.

The orders keep coming, but due to the coronavirus outbreak, they are delivered later because different factories are closed or are not running at full power.

This week, Foxconn received approval from the Chinese government to start back at its factory in Shenzhen, where it starts with ten percent of employees, about twenty thousand people.

Chinese manufacturers such as Inspur and Lenovo are also going to increase their production according to the market analyst.

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