Yes but for how much longer? The Wall Street Journal dubs 1994 the year of the server, recalling the array of personal computer companies that launched servers in March, and quotes analyst Todd Bakar of Hambrecht & Quist saying that the gross profit margin on sales of servers averages 30% to 40%, compared with 15% to 25% for desktop personal computers – in the case of Compaq Computer Corp, servers account for just 5% of the company’s total personal computer shipments but 25% to 30% of its profits, says Susan Frankle, analyst at International Data Corp: the attractions of those margins must mean that every personal computer maker capable of doing so will soon have its own server line, and bang go margins.
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