There have been multiple eulogies for Windows-based desktop personal computers and laptops in the past few years as smartphones seemingly rule the gadget landscape.
But “old” tech giants Dell and HP, which both reported earnings after the close Thursday, are doing just fine in 2021. Dell said sales were up 15% and operating earnings rose 21% while HP posted a sales increase of 7% and profit surge of 51%. The company raised its outlook too.
That’s despite widely publicized concerns about chip shortages too. Both companies warned in May that the issue will hurt supplies and potentially lead to higher prices. Increased shipping costs could have an impact on profits as well.
Still, HP shares are up about 20% this year while Dell has surged nearly 40% — thanks to strong demand for old-fashioned PCs running on the iconic Microsoft operating system as well as newer devices such as Chromebooks that use the OS from Google owner Alphabet.
Many consumers have upgraded their PCs during the pandemic to work or learn more effectively from home. That’s been great news for HP and Dell.
According to research firm Canalys, HP maintained its top spot as the largest PC company in the US in the second quarter, with a 21.9% market share, compared to Apple’s second place showing of 20.6%. Dell was third, with a 15.6% share.
