Dell Technologies and HP Inc. have released their quarterly earnings reports, indicating that the anticipated recovery in the personal computer market is stalling. Both companies saw their stock prices fall in after-hours trading.
Dell's personal computer division reported a 1% decline in revenue for the third fiscal quarter, totaling $12.1 billion, which missed expectations. Meanwhile, HP's personal computer segment experienced a 2% increase in revenue, reaching $9.59 billion, yet still fell short of analysts' average forecasts.
In a conference call with analysts, Dell's Chief Financial Officer, Yvonne McGill, mentioned that the PC upgrade cycle is expected to extend into the next year. HP's CEO, Enrique Lores, noted that the release of Microsoft's new Windows software has not driven enterprise PC sales as rapidly as in the past.
Following a surge in demand for laptops during the initial phase of the pandemic due to remote work and learning, the PC market has seen a historic decline in recent years. Industry analysis firm IDC reported in October that while the market showed signs of recovery earlier this year, shipments declined again in the third quarter.
