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Server shipments in Europe, Middle East and Africa (EMEA) continued to decline in the last three months, with sales down by four per cent in Q2 2002.

That's the somewhat depressing conclusion of the latest study by analysts Gartner Dataquest, who estimate total server sales in EMEA during Q2 2002 totalled an estimated 308,000.

Gartner said server spending was significantly weaker due to both aggressive price competition and a continued move towards investment in low-end systems at the expense of midrange servers. Revenues declined by 14 per cent in Q2 2002, falling to $3.54 billion in the EMEA region.

Systems in the less than $5,000 price brand and rack-optimised systems were the market hotspots, with volume growth of 16 per cent and 18 per cent respectively.

From a revenue perspective, the combined shares of HP and Compaq gave the newly merged vendor a slight lead.

"Although the combined company reached the number one spot, it suffered a big market share loss on the year ago period, and will be challenged to maintain this position in the face of increasing competition in the coming quarters," Gartner Dataquest notes. ®

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