Chip shortage likely to affect laptop output in 2021: Dell, HP says

By Sayujya S, Desk Reporter
  • Follow author on
PC Image
Representational Image

US-based computer technology companies Dell and HP warned the world that the ongoing computer chip shortage could impact their ability to meet demand for laptops this year.

The two firms reported quarterly revenue that beat estimates on 27th May, as customers continued to shop for personal computers, even as pandemic-led restrictions eased in many parts of the world. However, shares of Dell fell 1 percent, while those of HP dropped as much as 6 percent, after both companies warned the ongoing computer chip 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, adding that 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, which ranks second among global PC vendors according to data, said the shortages would limit its ability to supply personal computing devices and printers at least until the end of the year.


Still, the companies, which are leaders in the personal computing industry, said they were optimistic about the overall market, expecting the surge in demand for laptops needed by people working and going to school remotely to continue. As per statistics, global shipments of PCs, the industry’s collective term for laptops and desktops, grew 55.2 percent during the first quarter.

Dell said revenue from its client solutions group, which includes desktops, notebooks and tablets, rose 20 percent to $13.31 billion in the reported quarter. Meanwhile, HP’s PC-related sales rose 27 percent in the quarter ended April 30, while notebook sales surged 47 percent from the same period a year earlier.

Related: S.Korea aims to be global leader in chip making; Reveals plan worth $450bn