HP, Dell Report Cooler PC Sales Due to Fluctuating Business Demand | Tech Rasta

Dell and HP have reported weaker demand for enterprise computers. While the PC market is booming, the era of the pandemic is over.

Recently, companies It has warned investors that while commercial PC sales grew in the last quarter, Business demand for computers is declining. Executives from both companies claim that economic uncertainty is driving the decline in corporate demand. High inflation and energy costs have led to fears of a downturn.

“We saw a significant shift in corporate sentiment during the quarter,” Dell Chief Operating Officer Chuck Whitten told investors Aug. 25 by the companies. Slow down and shrink orders

HP has also seen a delay in ordering, HP CEO Enrique Lores said on Tuesday’s earnings call, according to a Seeking Alpha memo.

Happy Valley, Oregon, plans to delay PC purchases, said Will Wilson, data systems manager. during the pandemic The city has accelerated the normal computer replacement cycle for four to five years. to support remote work As a result, there are many laptops purchased within the past two years.

“This will restart the clock. if you need for those systems in the future,” he said, noting that Happy Valley will return to its normal replacement schedule.

Another municipality is the city of Corona. california intend to spend less on computers Because of the adoption of cloud-based virtual desktop technology. Shifting compute loads to the cloud eliminates the need to provide employees with high-performance machines. This means cities can use cheaper devices and replace them with less, says CIO Chris McMasters.

“[We’ve run] engineering [computer-aided design] systems on tablets, which generally require serious hardware,” he said.

Recently, the PC market has seen the end of its two-year dominance, with many companies stocking up on new computers and fearing the recession will drive costs down. Worldwide shipments of desktops, laptops and workstations have declined over the past two quarters, research firm IDC reported. A sharp drop in consumer demand led to a huge 15.3 percent drop in the last quarter. But analysts view corporate purchases as volatile as well.

Commercial purchases are cooler, though. But it tends to be more flexible than the consumer market, said IDC analyst Jitesh Ubrani.

“We believe large enterprises are in a better position to deal with economic storms” than consumers, he said.

Despite the slump in the PC market But the PC market is still higher than it was before COVID-19, Ubrani said. hardware replacement cycle And the end of Windows 10 support will drive the demand for new computers in the future.

A slow purchase doesn’t mean the computers lost the importance they gained during the pandemic, Lores said.

“PCs are more relevant than they were three years ago,” he said.

Leading PC manufacturer
HP and Dell are the second and third largest PC manufacturers in the second quarter of 2022, according to IDC.

Mike Gleason is a journalist covering all-in-one communication and collaboration tools. He previously mentioned various communities. in the Metrowest region of Massachusetts for Milford Daily News, Walpole Times, Sharon supporter and Medfield PublishersHe also worked for newspapers in central Massachusetts and southwestern Vermont and served as a local editor for patch. Can be found on Twitter at @MGleason_TT

Source link