"lack of core" is still grim! Dell and Hewlett-Packard say it may affect the supply of PC this year

Dell and Hewlett-Packard reported quarterly results after Thursday's trading. Both companies warned that persistent chip shortages could affect their laptop supply capacity this year, sending their shares down 0.2 per cent and 5.9 per cent respectively in after-hours trading.

Both Dell and Hewlett-Packard beat expectations in quarterly revenue

Both companies reported quarterly revenues that beat Wall Street expectations, suggesting that consumer demand for personal computers has not weakened significantly, despite the gradual easing of social restrictions in many parts of the world.

HP's total revenue for the quarter ended April 30 was $15.9 billion, better than market expectations of $15 billion, with laptop sales up 47% year-on-year and sales of dagger PC-related products up 27%.

Dell's first-quarter revenue rose 12% to $24.49 billion, exceeding market expectations of $23.4 billion. Revenue from Dell's customer solutions division, which includes desktops, laptops and tablets, rose 20% to $13.31 billion in the quarter.

Despite the good results, Cross Research analysts believe that some investors believe that PC growth has reached its peak and will not accelerate further. This led to a decline in the shares of the two companies in after-hours trading.

Shortage of chips or restrictions on PC supply

At the same time, both companies have expressed concern about chip shortages.

"the supply of components remains tight," Thomas Sweet, Dell's chief financial officer, said on an earnings call. He added that he expected the chip shortage to continue into next year. The rising cost of purchasing chips will reduce the company's operating profit for the quarter and lead to a slight drop in revenue.

Hewlett-Packard said that chip shortages will limit its ability to supply PC and printers at least until the end of the year. Enrique Lourdes (Enrique Lores), the company's CEO, predicts that chip shortages could last until the end of 2021.

Nonetheless, Hewlett-Packard and Dell said they were optimistic about the overall market outlook and expected demand for laptops from consumers who telecommute and telecommute to continue to soar.

Global PC shipments rose 55.2 per cent year-on-year in the first quarter, according to preliminary data from (IDC), a research firm.