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Dell and HP Inc expect the PC market to grow this year
The past 2021 was very successful for PC manufacturers, and now they admit that they still cannot meet demand in full. Some of them believe that even after the pandemic ends, PC sales will not decline. Dell, for example, sold a record number of personal devices last year.
Image source: Dell
CEO of HP Inc. Enrique Lores, referred to by Bloomberg, recalled that in 2021 the PC market grew for the first time in almost ten years, and also expressed the hope that growth will continue at the end of this year. The demand will be driven by laptops that were in demand during the pandemic, but even after the restrictions are relaxed, they will remain in the focus of consumer preferences.
The structure of demand will change slightly, as representatives of HP Inc explain. As soon as corporate employees return to their regular jobs, they will need new office computers, so falling demand in the retail segment will be offset by growth in the commercial segment. Head of HP Inc. believes that in 2021 the demand for PCs will be 45% higher than the level at which it was before the pandemic, but manufacturers are unable to meet it due to the lack of components. Earlier in the third quarter, the deficit of components cannot be overcome, according to the company.
Dell in the last fiscal quarter increased revenue by 9% to $ 26.1 billion. The customer products segment provided revenue growth by 17% to $ 13.8 billion, the company shipped a record 50.3 million personal devices over the past year, to which it includes desktops, laptops and tablets. By the end of this year, Dell’s revenue should increase by another 3-5%, according to company representatives. In the commercial sector, Dell’s quarterly revenue increased by 16% to $ 9.9 billion, in the retail sector — by 19% to $ 3.8 billion.
HP Inc. for the quarter increased total revenue by 7% to $ 15.65 billion, but in the area of personal systems, it grew by 34% at once. Both manufacturers demonstrated dynamics of changes in financial indicators, which outstripped analysts’ expectations. Dell PC shipments in 2021 were 8% higher than in the previous year. In the client segment, Dell’s management expects the main demand to concentrate in the first half of the year, corporations will connect in the second half of the year.