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HP and Dell announce strong profits, pointing out a bullish outlook for PCs

Dell reported Thursday that first-quarter revenue increased 12% year-on-year to $ 24.5 billion, with consumer revenue growth in the client solutions group, including desktops and notebooks, up 42%. .. The fiscal year got off to a strong start after Dell reported record year-round sales in February.

Last year, PC sales recorded the largest growth in 10 years. This emphasizes the transition from mobile devices. Coronavirus pandemic, According to industry data. According to International Data Corporation, PC shipments are expected to increase by 13% in 2020 overall and by 18% in 2021 despite a shortage of semiconductors.

HP Chief Executive Officer Enrique Lores said:

He said on Thursday that personal computers will continue to be the focus of next year as HP has revised its full-year earnings outlook upwards, with second-quarter sales up about 27%. According to the company, it’s for consumers. Sales have increased significantly, with the computer business up 72% and the printing business up 77%.

According to Lores, the global semiconductor shortage is likely to continue throughout the year, helping to extend the boom in laptop sales to 2022, Dell shares.

The strength of demand is also echoing from others.

Intel Co., Ltd.

CEO Pat Gelsinger, who once owned a majority of Dell

VMware Co., Ltd.

Pointed out that the PC was revived in the era of chip makers April First Quarter Earnings AnnouncementThe company shipped a record number of notebook central processing units in the previous quarter, he said.

“And as the world becomes more digital, we believe there are 10 years of semiconductors in front of us,” he said at an industry event this month.

On Thursday, Dell Chief Operating Officer Jeff Clark noted the company’s performance, including record earnings.

“Digital transformation is accelerating significantly around the world, and we can see that in the first-quarter sales of $ 24.5 billion, a record high,” he said in a written statement. I added that. It is the center of the world economy and society. “

Clark said the overall PC market was growing during the pandemic and is expected to continue to grow. Shift to hybrid working Each household owns more devices. He said the target market for Dell’s client services business should reach $ 750 billion by mid-2010, from $ 600 billion before the pandemic.

Buying a large number of laptops is usually cheaper, but less performant, but more frequent replacements.

According to Dell, the company’s commercial desktop business is a slumping segment during the remotework era, and demand is improving as buyers prefer laptops.

According to analysts, desktop sales can benefit from supply shortages that can delay the availability of other devices. “The demand for PCs of all kinds is still so urgent that we expect at least some buyers to settle on desktops instead of notebooks,” said Jiteshu Ubrani, research manager at IDC. I have.

In the first three months of 2021, the second and third-largest PC vendors, HP and Dell, shipped approximately 19 million and 13 million units, respectively. IDC.

Dell’s first-quarter profits six-folded to more than $ 880 million.Dell Will spin off VMware ownership In the second half of 2021.

Meanwhile, VMware’s first-quarter profits were up 10% to $ 425 million and revenues were up 9.5% to $ 2.99 billion.

HP’s second-quarter profits increased 61% to $ 1.23 billion, with revenues increasing from $ 12.47 billion in the previous year to $ 15.88 billion. The company currently expects full-year adjusted earnings per share to be $ 3.40 to $ 3.50, or 25 cents above previous forecasts.

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Write to Maria Armental maria.armental@wsj.com

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HP and Dell announce strong profits, pointing out a bullish outlook for PCs

Source link HP and Dell announce strong profits, pointing out a bullish outlook for PCs

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