Shortages Loom in Laptop Screens, CPUs Due to Peak Consumer Demand, Say HP, Dell
Industry shortages of laptop LCD panels and components threaten to impede sales as the supply chain buckles under the weight of sustained consumer demand for notebook PCs as “essential” work-from-home and remote-learning connectivity tools, said market leaders HP and Dell…
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on their Thursday earnings calls. HP’s fiscal Q3 consumer revenue soared 30%, while Dell’s Q2 consumer business was up 18%. Both quarters ended July 31. Both stocks closed 6% higher Friday, HP at $19.85, Dell at $66.21.HP said it expects industry-wide "constraints" in CPUs and panels will “negatively impact” its ability to meet demand, especially for notebooks. The “key limitation” in HP’s fiscal Q4 ending late October is “on the supply chain side,” said CEO Enrique Lores. “We really need to continue to find more components, processors, some panels to respond to the demand that we see.” Revenue was up 30% for HP notebooks in Q3 but down 29% for desktops and down 30% for workstations.