Dell Technologies Inc and HP Inc reported quarterly income that beat Wall Street estimates on Thursday, as clients continued to buy private computer systems, whilst pandemic-led restrictions eased in lots of components of the world. However, shares of Dell fell 1 p.c, whereas these of HP dropped as a lot as 6 p.c, after each firms warned the continued laptop chip scarcity may impression their capability to satisfy demand for laptops this yr.
“The element provide scenario stays constrained,” Dell Chief Financial Officer Thomas Sweet said in post earnings call, adding that rising costs to procure these chips would hit its operating income in the current quarter by the low to mid-single digits and lead to slightly lower revenue on a sequential basis.
HP Inc, which ranks second among global PC vendors according to IDC data, said the shortages would limit its ability to supply personal computing devices and printers at least until the end of the year. Still, the companies, which are leaders in the personal computing industry, said they were bullish on the overall market, expecting the surge in demand for laptops needed by people working and going to school remotely to continue.
Global shipments of PCs, the industry’s collective term for laptops and desktops, grew 55.2 percent during the first quarter, according to preliminary data from research firm IDC. Dell said revenue from its client solutions group, which includes desktops, notebooks and tablets, rose 20% to $13.31 billion in the reported quarter.
HP’s PC-related sales rose 27 percent in the quarter ended April 30, while notebook sales surged 47 percent from the same period a year earlier. Dell’s revenue rose 12 percent to $24.49 billion in the first quarter, beating estimates of $23.40 billion, according to Refinitiv IBES data, while HP posted overall revenue of $15.9 billion above the $15 billion estimate.
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