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Dell and HP warn that chip shortages will cause them trouble

by on28 May 2021

Still beat Wall Street 

Dell and HP reported quarterly revenue that beat Wall Street estimates but both warned that chip shortages could cause them problems. 

Dell Chief Financial Officer Thomas Sweet said in a post-earnings call that the component supply situation remains constrained and 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, 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.

Dell said revenue from its client solutions group, which includes desktops, notebooks and tablets, rose 20 percent 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 estimates.

Last modified on 28 May 2021
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