HP and Dell PC sales growth surged, chip shortage may effect consumer demand

Dell and Hewlett-Packard announced their financial reports. Although some parts of the world were unblocked, data showed that consumers and enterprises continued to rush to buy computers. Despite the good earnings report, the share prices of the two companies fell after the market.

In a financial report, Dell’s revenue increased by 12% year-on-year to $24.5 billion, higher than analysts’ estimate of $23.3 billion. Hewlett-Packard’s second-quarter revenue increased by 27% to $15.9 billion, which was also $1 billion higher than analysts’ expectations. HP also raised its annual profit target.

Cross Research analysts believe that although the data is beautiful, some investors believe that PC growth has reached its peak and will not accelerate further. After the financial report was announced, Dell’s stock price fell about 1% in after-hours trading, and HP fell by more than 6%.

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HP CEO Enrique Lores (Enrique Lores) pointed out that during the epidemic, many people have to work remotely and learn remotely, so the demand for notebooks has increased. This demand is sustainable; the main factor affecting the company’s performance is computer chips. Out of stock, and the out of stock may continue until the end of 2021.

Dell executives are also worried about the shortage of chips, and they believe that the shortage of component supply chains will continue until next year. Dell CFO Tom Sweet (Tom Sweet) said that the cost of memory chips and displays has risen, and Dell will factor it into the price to see how it affects computer demand.

Sweet said in an interview: “This situation will continue, we have to face it, and the problem will not dissipate within a period of time. In the long run, we are still very optimistic. The epidemic has made customers realize the need for investment at a faster speed. Technology.” Sweet expects Dell’s revenue in the second fiscal quarter to increase by 6% from the previous quarter.

In the three months ending April 30, HP’s PC revenue grew 27% year-on-year. Dell’s revenue from the notebook desktop division increased by 20%. According to HP, notebook sales increased 47% year on year.

Dell is transforming, trying to shift from one-time hardware sales to a paid subscription computer service model. Despite this, PC still accounts for half of its revenue. In the first fiscal quarter, Dell’s consumer PC revenue increased by 42% to 3.5 billion U.S. dollars; the growth rate was 19% in the previous quarter. PC sales revenue from enterprises and government agencies increased by 14% to reach 9.8 billion U.S. dollars.

Compared with the same period last year, server and network revenue increased by 9%, reaching 4.1 billion US dollars. Storage hardware revenue reached 3.8 billion U.S. dollars, and service revenue increased by 10% to 6.45 billion U.S. dollars.

In addition, Dell’s revenue from VMware was approximately US$3 billion, a year-on-year increase of 9%. Dell said in April that it would spin off VMware, split the entire company into two, and become two listed companies.