HP recently posted quarterly sales that the PC manufacturer fell short of its original projections for this quarter. The reason behind this is the ongoing industry-wide shortage of chips hitting the tech industry extremely hard. The company’s reported revenue in the third quarter was $15.3 billion, up 7% but less than the average analyst estimate of $15.9 billion. However still the profit topped estimates, and while the demand is growing, a shortage of low-cost components is holding back HP’s ability to fill all the orders.
“We could have grown more if it wasn’t for the shortages of components. We continue to see very strong demand in the PC business, both in consumer and corporate.”
the profits of the company, according to analysts increase by $1 a share, and in the fourth-quarter profit, minus certain items, will be 84 cents to 90 cents a share. Analysts, on average, estimated 80 cents however the company didn’t provide a revenue forecast in its earnings release.
The shares of the PC manufacturer closed at $29.10 in New York, however, it slipped about 3% in extended trading following the announcement and the stock has gained 18% this year. The sales of the company have indeed accelerated on-demand for laptops needed for work and study at home.
However, some of its major investors and analysts have expressed their concern that the rapid expansion of the PC market, after a decade of stagnation, is a short-term phenomenon. To make matters worse, the notebook PC revenue of HP fell from the preceding quarter and was flat compared with a year earlier.
HP’s lucrative printing business is picking up as companies re-equip offices that are slowly returning to use. The Personal System revenue on the other hand, for most computers, fell about 1% to $10.4 billion in the period ended July 31. Printing sales climbed 24% to $4.9 billion.