Dell, HP Expect Semiconductor Crisis To Constraint 2021 PC Supply: Reuters

Dell Technologies Inc DELL and HP Inc HPQ estimated the ongoing semiconductor chip crisis to affect their laptop supply for 2021, despite beating the analyst consensus for their Q1 and Q2 FY21 results, Reuters reports.
Dell CFO Thomas Sweet estimated the rising chip procurement costs to hit their current quarterly operating income by low to mid-single digits and affect their subsequent quarter revenue growth.
HP estimated the crisis to restrict its personal computing device and printer supply by at least 2021 end.
The companies remain optimistic following continued higher remote working and schooling demands.
Dell’s Q1 client solutions group revenue encompassing desktops, notebooks, and tablets grew 20% to $13.31 billion. Revenue increased 12% to $24.49 billion, beating the analyst consensus of $23.4 billion.
HP’s Q2 PC-related sales increased 27% to $10.6 billion, while notebook sales surged 47% to $7.5 billion. It posted a revenue of $15.9 billion, beating the analyst consensus of $15 billion.
Previously, Dell CEO Michael S. Dell, Intel Corp INTC CEO Pat Gelsinger, and Taiwan Semiconductor Manufacturing Co Ltd TSM Chair Mark Liu estimated the crisis to loom beyond 2021.
Price action: HPQ shares traded lower by 8.35% at $29.42 on the last check Friday.