HP Inc said the shortages would limit its ability to supply personal computing devices and printers at least until the end of the year
In the wake of the chip supply crisis which has doomed production plans of various manufacturers, Dell Technologies Inc and HP Inc have said that PC supplies could be the next victim of the ongoing chip crunch this year.
What first hit the automotive industry and then went on to cripple the electronics industry as well, it seems like the PC industry will be taking the next blow, as the companies revealed that the shortage could impact their ability to meet demand for laptops this year.
“The component supply situation remains constrained,” Dell Chief Financial Officer Thomas Sweet said in a post-earnings call.
Sweet added that the 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 Inc said the shortages would limit its ability to supply personal computing devices and printers at least until the end of the year.
As people continue working from home and schools are held online, products like computers and laptops have seen a soaring demand. But even as pandemic-led restrictions eased in many countries, both PC majors reported quarterly revenue that beat estimates. This demand trend, the companies say, is expected to continue.
Global shipments of PCs grew 55.2 per cent during the first quarter, according to preliminary data from research firm IDC.
