scorecardresearch
Follow Us:
Tuesday, June 15, 2021

Dell, HP say chip shortages will hit PC supplies this year

Both companies warned the ongoing computer chip shortage could impact their ability to meet demand for laptops this year.

By: Reuters |
May 28, 2021 10:55:25 am
Dell, HP, Chip shortage, PC shortage, chipset shortage, What is chip shortage, global laptop market, Dell laptops, HP laptopsA Dell logo is pictured on the side of a computer in this photo illustration October 12, 2015. REUTERS/Carlo Allegri/Illustration/File Photo.

Dell Technologies Inc and HP Inc reported quarterly revenue that beat Wall Street estimates on Thursday, as customers continued to shop for personal computers, even as pandemic-led restrictions eased in many parts of the world.

However, shares of Dell fell 1%, while those of HP dropped as much as 6%, after both companies warned the ongoing computer chip shortage could impact their ability to meet demand for laptops this year.

“The component supply situation remains 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% 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% in the quarter ended April 30, while notebook sales surged 47% from the same period a year earlier.

Dell’s revenue rose 12% 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.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Technology News, download Indian Express App.

  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
Advertisement
Advertisement
Advertisement
Advertisement