Dell and HP Revenue Rises despite uncertain outlook
Two of the world’s largest PC makers, Dell and HP, are adjusting their expectations for the coming months due to a decline in consumer demand for new devices. Dell saw a 10% increase in revenue in its most recent quarterly report, reaching $24.4 billion. However, the company anticipates that revenue will remain stagnant around $24-25 billion in the next fiscal quarter, citing weak consumer demand as a major factor.
Similarly, HP reported a 0.3% decrease in quarterly revenue compared to the previous year. CEO Enrique Lores acknowledged the challenge posed by the same consumer demand downturn and expressed plans to capitalize on commercial opportunities instead.
These two companies, holding a combined 35.2% of the global PC market, are facing tough times. Lenovo, the market leader, experienced a 24% revenue growth in the same period, claiming a 24.8% market share. HP’s revenue decline was primarily driven by a 4% decrease in Consumer Personal Systems revenue, while its Commercial Personal Systems revenue saw a 5% increase.
Dell, on the other hand, witnessed a worrying 18% drop in Consumer Client Solutions Group revenue, while its Commercial counterpart only rose by 3%. Despite these challenges, Dell’s COO, Jeff Clarke, highlighted the potential of artificial intelligence as an opportunity for the company, emphasizing the technology’s continued growth prospects.
Despite the cautious outlook from Dell and HP, research firm Canalys predicts a “modest” growth in the consumer market during the upcoming holiday season, driven by promotional activities. Following the earnings reports, HP’s shares fell by 8% in extended trading, while Dell’s shares saw a 10% decline, reflecting investor concerns.
In conclusion, while Dell and HP are navigating a challenging period marked by weak consumer demand, both companies are exploring strategies to adapt to changing market dynamics and capitalize on emerging technologies like artificial intelligence. The coming months will be crucial for these industry giants as they seek to navigate through uncertain times in the PC market.
