But “old” tech giants Dell and HP, which both report earnings after the close Thursday, are doing just fine in 2021. 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.
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.
But shipments for HP and Dell both rose from a year ago, by 20% and 10.5% respectively. Apple’s shipments, on the other hand, fell about 3%. The Canalys numbers include tablets as well, so iPads are part of the overall Apple figures.
The numbers for HP and Dell are “fantastic news for PC vendors,” said Brian Lynch, research analyst at Canalys, in the second quarter report.
“The commercial and education segments have exploded,” he added. “The US economy has bounced back well from its pandemic woes and small businesses are recovering, which will lead to a wave of purchasing from the segment.”
Both companies also have a lot going for them beyond the traditional PC business.
Dell is a leader in the server market for big businesses and has become a major player in storage and security thanks to its EMC acquisition in 2015. It also is a top seller of high-end laptops and desktops for gamers through its Alienware unit.
So even though Dell and HP may not generate as much excitement in the world of tech as the sexier FAANG stocks, these relics from the PC era are still churning out strong enough growth in sales and earnings to keep Wall Street happy.