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Intel’s Supply Shortages Has Put HP And Dell In A Catch-22

Intel Corp. is possibly going to steal Christmas from large PC makers. HP Inc. and Dell Technologies Inc. have come out open that they expect a bad result in the future as there is a shortage for chips and it is something that Intel had apologized for. The chip giant’s shortages have turned worse as per Dell but Intel has come forward saying that it expects to get stronger in the fourth quarter. Quarter-over-quarter the Intel CPU shortages are only getting worse and this is found to hamper the premium consumer PC Q4 forecasted shipments and commercial PC. Dell expects to make cuts in the fourth quarter of 2020 which is the busiest and holiday shopping time of the year. Dell stocks decline by 4% just hours after its trading gains.

When compared to the industry growth rate HP’s PC business had revenue escalation of 4% in the fiscal fourth quarter. However, HP has made it clear that the supply shortages will constrain their sales in the present quarter that is the holiday shopping season. The CPU supply is going to reduce the sales in the first quarter followed by the fourth quarter. The revenue is definitely going to have a greater impact compared to the profit for the quarter. HP had its stock gains stable for a few hours owing to the chaos created by the takeover bid from Xerox Holdings Corp. The shortages of CPUs and memory chips plus high prices have hurt PC makers as the shopping season has arrived.

Similarly, Intel’s current dicey situation has opened a new door for Advanced Micro Devices Inc. (AMD). The company plans to use this supply shortage state of affairs to combat its rival Intel. The inability of the leading chip company to provide products to the American PC manufacturers like HP and Dell will help AMD step up.

Efrain Barth
Efrain Barth Subscriber
Sr. Content Writer At The News Ledger 24

Efrain serves as the Sr. Content Writer of the Technology Department at News Ledger 24. Although he is a newbie in the field of writing, he is one of the key entities in the Technology field with a strong contribution of about 6 years. His commendable comprehension in the Technology sector and superior presentation skills have made him perfect fit for his current position in our content department. He never fails to demonstrate managerial skills while carrying out all the activities in the department superiorly. He accomplished a Bachelor’s Degree in Technology Management and handles all the quality checks work at our Technology section efficiently.

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