Dell, HP and Microsoft, computer manufacturing companies, They work at full speed to manufacture most of its components before January 20, the date on which Donald Trump will take the presidency of the United States and on which he plans to impose tariffs on China.
After Trump said that some of his first measures would be tariffs on Mexico, Canada and China, companies asked their suppliers to prepare more infrastructure components of cloud servers between this month and December, to avoid paying more with tariff measures.
Nikkei Asia reported that Trump’s tariffs now represent a series of rearrangements for Microsoftwhich asked its suppliers to manufacture and assemble XBOX consoles outside of China as soon as possible, as well as the manufacturing of Surface computers.
Dell and HP: With ‘disappointing’ sales in the face of Trump tariffs
Dell Technologies Inc. and HP Inc. announced their quarterly financial results that suggest the expected recovery of the personal computer market is stagnating. Shares of both companies fell in after-market trading.
Revenue generated by Dell’s PC business decreased 1 percent to 12.1 billion dollars in the third fiscal quarterbelow estimates. While sales at HP’s PC unit rose 2 percent to $9.59 billion in the same three-month period, they also missed analysts’ average estimates.
“The PC refresh cycle is extending into next year,” Dell Chief Financial Officer Yvonne McGill said on a call with analysts after the results on Tuesday. HP CEO Enrique Lores said in an interview that the launch of the new edition of Microsoft Corp.’s Windows software. has not boosted PC sales from corporate customers as quickly as in previous releases.
The market had seen a historic decline in recent years following a surge in demand for new laptops in the early months of the pandemic, as students and corporate employees stayed home. Although this year signs of recovery began to materializeshipments fell again in the third quarter, industry analyst IDC said in October.
PC makers hoped the new machines, which are touted as better for AI workloads, would spur demand. But “buyers have not yet seen benefits clear or commercial value,” Mikako Kitagawa, an analyst at Gartner Inc., said in a report last month.
Las Dell shares fell nearly 10 percent in late trading after closing at $141.74 in New York. The stock had gained 85 percent this year through Tuesday’s close. HP shares were down about 8 percent after closing at $39.10. HP shares had risen 30 percent this year.
Dell is best known for its computer business, but the Round Rock, Texas-based company has enjoyed a revival of investor interest due to its desktop servers. high power for AI workloads. Earlier this month, Dell announced it was shipping servers with Nvidia Corp.’s new Blackwell semiconductors to cloud infrastructure provider CoreWeave.
Dell’s infrastructure unit sales, including servers, rose 34 percent up to 11.4 billion dollars in the period ending November 1, the company said in a statement. This figure slightly exceeds the 11.3 billion dollars expected by analysts. Total revenue rose 10 percent to $24.4 billion, missing analysts’ median estimate of $24.6 billion, according to data compiled by Bloomberg.
According to executives, the company sold AI-optimized servers worth 2.9 billion dollars in the quarter. The figure represents a reduction from the $3.1 billion reported in the previous period.
“AI is a strong opportunity for us and there are no signs of it slowing down,” Jeff Clarke, Dell’s chief operating officer, said in the statement. Clarke highlighted that orders for AI servers in the quarter reached the 3.6 billion dollars and that there was growth “in all types of clients.”
With information from Bloomberg and Nikkei Asia.
