Dell Technologies Inc beat market estimates on Thursday. This comes as a result of continued remote work culture that fuels a stronger demand for laptops, desktops and cloud services.
According to International Data Corp figures, PC shipments rose 13% from April to June.
The industry has faced issues owing to components shortage and supply chain challenges but the revenue at Dell’s client solutions unit – home to its hardware devices – rose a whopping 27% to a record $14.3 billion.
The company’s cloud-computing unit, VMware, grew 8%. This is because more companies worldwide are now looking to cut costs and are focused on expanding their digital presence.
According to Refinitiv data, Dell’s total revenue increased 15% to $26.12 billion and beat the analysts’ average estimate of $25.53 billion.
With the reopening of the economy, some consumer spending has shifted away from computers to other sectors. However, with a recent rise in COVID cases, remote work could increase again and could potentially boost the demand for laptops and desktops again.
Dell’s net income fell to $880 million, or $1.05 per share, in the end of the quarter – July 30, from $1.01 billion, or $1.37 per share, last year.
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