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Server Sales Finally Tick Up -- Just Barely First Increase In 10 Quarters Rise could signal rebound as corporate customers finally start spending again.(A)
Byline: BRIAN DEAGON
In the second quarter, for the first time in 10 quarters, sales of computer servers rose from the year-ago period, says an industry report.
The increase was barely noticeable -- up a scant 0.2% to $10.6 billion -- but it may mean the worst is over.
The server industry is still working through a corporate buying binge that reached its high in 2000, with sales of $60 billion. Sales peaked in the fourth quarter of that year, at $17 billion.
But sales dropped to $50 billion in 2001, and to $44 billion last year.
Analysts say the latest numbers are encouraging.
"It could be a turning point in the market," said Hoang Nguyen at International Data Corp., which issued the report Friday. "Unit shipments have been climbing for the last four quarters."
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