Dell Technologies has posted 3 percent increase in revenue during the first quarter of 2019 though its server business fell for the first time in 10 quarters due to less demand in China.
Revenue from Dell’s servers unit, its second largest business, dropped about 8.8 percent to $4.18 billion in the first quarter of 2019.
Dell Technologies said revenue in the Infrastructure Solutions Group, host to the server business, fell 5 percent to $8.20 billion for its fiscal 2020 first quarter ended May 3, 2019.
Dell has increased its server market revenue share to 18.7 percent in Q4 2018 from 17.5 percent in Q4 2017, the latest IDC report in March said.
Dell Technologies generated revenue of $4.426 billion from server business in Q4 2018. Dell led the worldwide server market in terms of unit shipments, accounting for 19.4 percent of all units shipped during the quarter.
Hewlett Packard Enterprise (HPE) was the second largest supplier in the server market with 17.8 percent share in Q4 2018. HPE had clocked server revenue of $4.199 billion during the fourth quarter of 2018.
Dell today said its storage revenue of fell 1 percent to $4 billion in Q1 2019.
Dell’s storage market share increased to 20.6 percent in Q4 2018 from 19.3 percent in Q4 2017, research report from IDC said.
HPE’s storage market share decreased to 18 percent in Q4 2018 from 19.2 percent in Q4 2017.
Dell generated revenue of $2.987 billion from storage business in Q4 2018 as compared with HPE’s storage revenue of $2.606 billion.
Dell Technologies Chief Financial Officer Thomas Sweet said on Thursday that the computer maker has been planning for a potential fourth round of U.S. tariffs on Chinese goods that could impact notebooks and monitors.
Performance of Dell Technologies
Infrastructure Solutions Group revenue of $8.2 bn (–5%)
Storage revenue of $4 bn (–1%)
Server and networking revenue of $4.2 bn (–9%)
Client Solutions Group revenue of $10.9 bn (+6%)
Commercial revenue of $8.3 bn (+13%)
Consumer revenue of $2.6 bn (–10%)
VMware revenue of $2.3 bn (+13%)
Thomas Sweet said the company would adjust its global supply chain to minimize impact on customers.
Dell’s total net revenue rose 2.6 percent to $21.91 billion in the three months ended May 3. Dell posted net income of $293 million in the first quarter, compared with a loss of $636 million a year earlier.
The server business also overshadowed a 13 percent jump in revenue from commercial customers, which was largely due to Microsoft’s decision to end support for Windows 7 in early 2020, Reuters reported.