Friday, April 19, 2024

Chip Shortages Will Limit the Ability to Supply Personal Computers This Year: Dell, HP

Customers continued to shop for personal computers even as pandemic-related restrictions lifted in many parts of the world, as Dell and HP announced quarterly revenue that topped Wall Street estimates.

However, Dell’s stock sank 1%, while HP’s dropped as much as 6%, as both companies warned that an ongoing computer chip shortage can affect their ability to meet laptop demand this year.

In post-earnings call, Dell Chief Financial Officer Thomas Sweet indicated that increased prices to purchase these chips will hit its operating income in the low to mid-single digits in the current quarter, resulting in somewhat reduced sales on a sequential basis.

According to IDC statistics, HP, which ranks second among worldwide PC vendors, warned the shortages will limit its ability to deliver personal computers and printers until at least the end of the year.

Nonetheless, the company leaders said they remained confident on the overall market, expecting the surge in demand for laptops needed by individuals working and going to school remotely to continue.

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