Dell beat market estimates for second-quarter revenue on Thursday with the switch to hybrid work, keeping demand strong for its laptops, desktops and cloud services.
Globally, people continue to spend on computer devices even after a year of working from home. International Data figures showed that PC shipments increased 13 percent from April to June, but the pace of growth was much slower than last year’s frenzy.
While the industry faced pressure from component shortages and supply chain issues, revenue from Dell’s customer solutions unit – which houses its hardware devices – rose 27% to a record $14.3 billion (approximately of Rs. 1.05.990 million).
Its cloud computing unit, VMware, grew 8%, thanks to orders from companies looking to cut costs and expand their digital presence.
Total revenue jumped 15 percent to $26.12 billion (about Rs. 1,93,600 crores), beating the average analyst estimate of $25.53 billion (about Rs. 1,89,230 crores) of according to Refinitiv data.
The reopening of the economy redirected part of consumer spending on computers to other sectors. But a recent increase in COVID-19 cases has generated renewed restrictions and could potentially increase demand for remote work equipment.
Dell’s net profit fell to $880 million (about Rs. 6,520 crores), or $1.05 (about Rs. 80) per share, in the quarter ended July 30, from $1.01 billion (about Rs. 80) of Rs.7,490 crores), or $1.37 (about Rs.100) per share, a year earlier.
© Thomson Reuters 2021