PC giants Dell and HP are on fire

by

But the “old” tech giants Dell and HP, which both report gains after closing on Thursday, are doing very well in 2021. This is despite widespread concerns about chip shortages.

Both companies warned in May that the problem would hurt supplies and could lead to higher prices. Increased shipping costs can also affect profits.

However, HP (HPQ) shares are up 20% this year while Dell (DELL) has increased by almost 40%, thanks to strong demand for old-fashioned PCs running on the icon Microsoft (MSFT) operating system, as well as newer devices such as Chromebooks that use Google’s proprietary operating system Alphabet (GOOGL).

Many consumers have upgraded their PCs during the pandemic to make it work or learn more effectively from home. This has been great news for HP and Dell.

According to research firm Canalys, HP maintained its number one position as the largest PC company in the United States in the second quarter, with a market share of 21.9%, compared to From Apple (AAPL) second place, with 20.6%. Dell was third, with a 15.6% share.

But shipments for HP and Dell increased from a year ago, by 20% and 10.5%, respectively. Apple shipments, on the other hand, fell by about 3%. Canalys numbers also include tablets, so iPads are part of Apple’s overall figures.

HP and Dell’s figures are “fantastic news for PC vendors,” Brian Lynch, Canalys research analyst, said in the second-quarter report.

“The commercial and educational segments have exploded,” he added. “The US economy has recovered from its pandemics and small businesses are recovering, which will lead to a wave of purchases in the segment.”

The company that literally started Silicon Valley is moving to Texas
HP and Dell are also world leaders in PCs … although Lenovo dominates the worldwide market with a 24% share, according to Gartner data. HP and Dell are second and third. Apple is the fourth in the world, with less than a 10% share.

Both companies also go far beyond the traditional PC business.

Dell is a market leader in large enterprise servers and has become a major player in storage and security thanks to its EMC acquisition in 2015. It is also one of the top sellers of range laptops and desktops. high for players through your Alienware unit.

HP earns about a third of its global revenue from its printer division, which includes a fast-growing 3D printing segment. HP unleashed its corporate technology Hewlett Packard Enterprise (HPE) business as an independent company in 2015.

So while Dell and HP may not generate as much excitement in the tech world as FAANG’s most attractive stocks, these PC-era relics continue to produce strong enough sales and earnings growth. to make you happy on Wall Street.

.Source