HP and Dell Meet Strong Increase in PC Demand

HP and Dell Meet Strong Increase in PC Demand

Computer sales rebounded after a seven-year slump in the final quarter of 2019, but remote work and distance learning have now led to a surge in demand for computers, with HP and Dell beating Wall Street estimates. . HP recently posted better-than-expected third-quarter financial results, driven by strong laptop sales during the pandemic. In fact, the total number of laptops shipped in the quarter increased 32% year over year, with more than half of the company's revenue for the quarter coming from laptops. HP's non-GAAP earnings per share were 49 cents on revenue of €14.3 billion, down 2,1% from the same period last year. However, analysts were forecasting earnings of 43 cents per share on revenue of €13,3 billion. In a statement, HP CEO Enrique Lores provided more insight into the company's strong third-quarter results, saying: “Our strong third-quarter results and strong pace of the quarter, in the face of unprecedented uncertainty, reflect the agility of our teams and the strength of our portfolio. We leverage our leadership in the consumer and business markets to capitalize on opportunities, from the PC's critical role in the era of remote work and education to the rise of subscription-based business models to enable greater flexibility. Our diversified portfolio and disciplined execution drive our performance and we are well positioned to deliver continued value creation. "

Increased demand for PC

Dell Technologies was also able to beat expectations for its second-quarter results, with the company reporting second-quarter net income of €1.1 billion (€1.37 per share) on revenue of €22,7 billion. Wall Street expected the company to report second-quarter revenue of €22,52 billion and non-GAAP earnings of €1,40 per share. Dell Technologies Chief Operating Officer Jeff Clarke attributed the company's second-quarter earnings to increased demand in the government and education sectors, saying: “In the second quarter, we saw strength in government and education, with orders increasing 16% and 24%, respectively, as parents, teachers and school districts prepare for a new frontier virtual learning. In the second quarter, Dell laptops, consumer PCs and gaming systems saw double-digit revenue growth, with consumer revenue increasing 18% while commercial revenue fell 11%. Now that employees are better equipped to work from home and students are prepared for distance learning, the question is whether computer hardware makers will see similar growth in the next quarter or whether consumers and businesses will lag behind. updating their devices now that many have already done so. during the early days of the pandemic. Via ZDNet