Dell, HP post disappointing quarterly sales as global PC market recovery stalls

While signs of a global PC market rebound began to materialise this year, shipments again dipped in the third quarter, according to IDC

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The global personal computer refresh cycle is “pushing into next year”, according to Dell chief financial officer Yvonne McGill. Photo: Shutterstock

Published: 2:54pm, 27 Nov 2024Updated: 3:16pm, 27 Nov 2024

Dell Technologies and HP reported quarterly financial results that suggest a long-awaited recovery of the personal computer (PC) market is stalling. The shares of each company dropped in extended trading.

Revenue generated by Dell’s PC business declined 1 per cent to US$12.1 billion in its fiscal third quarter, falling short of estimates. While sales in HP’s PC unit rose 2 per cent to US$9.59 billion in the similar three-month period, which also missed the average estimate of analysts.

“The PC refresh cycle is pushing into next year,” Dell chief financial officer Yvonne McGill said on Tuesday on a call with analysts after the results.

HP president and chief executive Enrique Lores said in an interview that the release of Microsoft’s new edition of Windows software has not fuelled PC sales from corporate clients as quickly as in previous releases.

The global PC market had seen a historic decline in recent years after a burst of demand for new laptops in the early months of the pandemic when students and corporate employees were stuck at home.

HP president and chief executive Enrique Lores speaks at the China Development Forum in Beijing on March 25, 2024. Lores said the latest iteration of Microsoft’s Windows software has not fuelled personal computers sales from corporate clients as fast as in previous releases. Photo: AFP

While signs of a rebound began to materialise this year, shipments again dipped in the third quarter, tech market research firm IDC said in October.