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After its initial launch several years ago, sales of Apple's Xserve rack server line struggled. Throughout each quarter of 2003, Xserve sales averaged in the 5,000 to 6,000 unit range. Then, in first-quarter, 2004, sales slumped to a low of 4,412. Apple responded with a timely revamp followed by a drop in price to a little more than $2,000. Result: Sales have more than doubled, according to Gartner's quarterly survey numbers.

"Clearly, the core audience for the Apple Xserve is among existing Mac users," said John Enck, an analyst at Gartner. "It plays well in any environment that has a good deal of heterogeneity in the client and server environment."