Worldwide revenue for server hardware dropped 13% in the second quarter, compared to the same period last year, according to the latest figures from Gartner Inc's Dataquest unit.

Revenue for servers was $10.1bn during the second quarter, down from $11.6bn in the same period last year. According to Gartner, revenue for the top four vendors shrank year-on-year, with only Sun Microsystems Inc and Dell Computer Corp's market shares increasing.

According to the figures, IBM Corp led the market with 29.6% of total revenue. IBM's market share increased from 27.9% in the same quarter last year, even though revenue decreased to $2.99bn from $3.24bn. Hewlett-Packard Co grabbed second spot with 24.7% of total revenue.

The Palo Alto, California-based company's market share was down from 27.4% in the same period last year, while its server revenue dropped to $2.49bn, from $3.18bn in the same quarter of 2001.

While Santa Clara, California-based Sun's market share increased from 16.6% to 18.4% over the year, its revenue actually dropped from $1.93bn to $1.86bn. Round Rock, Texas-based Dell's market share increased to 7.2% from 6.5% in the second quarter of 2001, while revenue dropped from $754m to $727m.

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