Jon Peddie Cites Strong Gains for the Workstation Market in Q2'10, but more Moderate Growth on the Horizon

TIBURON, Calif — September 01, 2010 — The workstation market posted another round of solid numbers in the second quarter of 2010, but that growth is expected to slow in Q3. So reports Jon Peddie Research (JPR) after wrapping up its second quarter analysis as part of its JPR Workstation Report series. The technology and market research firm reports that the industry shipped 795,000 workstations worldwide in Q2, resulting in sequential growth of 9.6% and a year-over-year increase of 32%. The 32% year-over-year growth matched the largest JPR has seen since Q1'06, though that shouldn't be surprising when considering how dramatically the market had fallen by Q2'09.

Dell and HP once again in a deadlock for market leadership
The story's now sounding very familiar. In the second quarter, HP and Dell were once again in a virtual tie for leadership in the workstation market. Dell just nudged HP in units, but by JPR's estimates, HP nosed out Dell in revenue. For yet another quarter, JPR calls this race a tie.

Expect future growth to moderate
The industry has had some hints that the workstation numbers for the second quarter were going to be strong. The industry has a consistent leading indicator for workstation market performance coming from the related market for professional graphics hardware. That market for professional GPUs (graphics processing units, either add-in cards or mobile modules) had been on a hot run, exceeding growth expectations for the preceding four quarters, especially Q1'10, which posted an all-time high of 1.3 million units. All those professional GPUs have to go somewhere, and the vast majority eventually ship in workstations. As professional GPU shipments rise, then so will workstation volume.

By contrast, the professional graphics hardware market moderated in the second quarter, essentially flat from Q1. Accordingly, while Jon Peddie Research expects workstation growth to continue into the third quarter, the firm anticipates a more moderate pace. And given concerns that the previous quarters' exceptionally hot numbers were hinting at a market getting too far ahead of itself, that moderation is probably a healthy thing.

About the JPR Workstation Report

Now in its twelfth year, JPR's Workstation Report - Professional Computing Markets and Technologies has established itself as the essential reference guide for hardware and software vendors and suppliers serving the workstation and professional graphics markets.

Subscribers to the JPR Workstation Report receive two in-depth reports per year providing a comprehensive analysis of the vendors and technologies driving the workstation platform. Clients also receive four quarterly reports detailing and analyzing market results for each calendar quarter. For information about purchasing the JPR Workstation Report, please call 415- 435-9368 or visit Jon Peddie Research at http://www.jonpeddie.com .

Based in Tiburon, California, Jon Peddie Research provides consulting, research, and other specialized services to technology companies, including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development.

About Jon Peddie Research

Dr. Jon Peddie has been active in the graphics and multimedia fields for more than 30 years. Jon Peddie Research is a technically oriented multimedia and graphics research and consulting firm. Based in Tiburon, California, JPR provides consulting, research, and other specialized services to technology companies in a variety of fields including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. Jon Peddie's Market Watch is a quarterly report focused on the market activity of PC graphics controllers for notebook and desktop computing.



Contact:

Jon Peddie,
Jon Peddie Research
415/435-9368
Email Contact

Pat Meier-Johnson,
Pat Meier Associates
415/389-1700
Email Contact




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