Dell and HP report revenue rises, but the outlook may not be quite as bright

LovabledanielsNovember 27, 2024111 Views

Dell and HP both expect poor revenue growth in next quarters
Computing giants say consumer market outlook for PCs is weak
A shift to AI PCs may signal shift in outlook, however

Two of the world’s largest PC makers have signalled caution for growth over the next few months as the demand for new devices declines.

Despite seeing its most recent quarterly revenue rise 10% year-over-year to $24.4 billion, Dell is now predicting its next and final fiscal quarter will see revenue stagnate around the $24-25 billion mark, with much of the uncertainty coming from weak consumer demand.

HP also announced its quarterly revenue had fallen 0.3% year-over-year, with CEO Enrique Lores stating the company is preparing to “capitalize on the commercial opportunity” given the same weak consumer demand it faces, too.

HP and Dell struggles

Together, the two companies account for more than a third (35.2%) of the global PC market (via Canalys), putting them in second and third place. In first place is Lenovo, which saw quarterly revenue increase 24% year-over-year earlier this month. It occupies nearly a quarter (24.8%) of the market.

For HP, its revenue decrease was heavily influenced by a drop in Consumer Personal Systems revenue, which was down 4%. To that tune, Commercial Personal Systems revenue was up 5%, highlighting the strong business-to-business market.

Dell’s Consumer Client Solutions Group revenue was down a more worrying 18%, with its Commercial counterpart up just 3%. Its Commercial business is also about five times greater than its Consumer business in terms of monetary value.

COO Jeff Clarke said that artificial intelligence, an emerging technology that shows “no signs of slowing down,” represents an opportunity for the company.

However, while the outlook might not be great for the two companies, research firm Canalys reckons “modest” growth in the consumer market could be seen over the festive period, with companies forced to enact promotions.

Following the disappointing news, shares in HP fell 8% in extended trading, with Dell shares down 10% in a mark of lost investor confidence.