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Dell, which has been aggressively cutting prices in a competitive market, suffered a server revenue drop of 2 percent in the first quarter of 2006, according to numbers reported by Gartner Tuesday.
Worldwide server shipments for the first quarter of 2006 increased 13.7 percent over the same quarter last year while average worldwide server revenue remained flat, the research firm said.
Worldwide server revenue totaled $12.4 billion in the first quarter of 2006, compared with $12.3 in the first quarter last year. Worldwide server shipments totaled nearly 2 million units in the first quarter of 2006, up from 1.7 million units in the same period last year.
In a statement, Gartner said Dell's revenue drop for the period was "atypical." Dell's shipments increased 7.1 percent in the same period, a rate lower than Hewlett-Packard, IBM and Sun Microsystems.
Sun, meanwhile, returned to server revenue growth for the first time in almost two years, driven by increases in its UltraSPARC and its Opteron-based server revenue.
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