Supply chain returns to normal for PCs: Dell • The Register

The personal computer supply chain is back to normal after 30 months of plague-induced disruption – there’s nothing to worry about for purchasing team heads at large corporate buyers.

Or rather, this is the opinion of Dell, the logistics expert who quickly went big building desktops and notebooks to order and selling them directly to customers.

“There will always be some issues in that chain, but in general it works more like the historical norm from our perspective,” said chief financial officer Tom Sweet this week.

It has contributed to the decline in consumer demand for computers and the rise in average selling prices of some components southwards as their availability has increased. Dell said it is trying to reduce inventories before it can take advantage of these falling costs.

As revealed earlier today, chip delivery times dropped slightly in August, according to Susquehanna International, although power management, microcontrollers and optoelectronic devices remain relatively scarce.

Dell’s commercial PC client business is holding up and driving the division it’s housed in. As for competitor HP, it has sold a higher number of shipments through retailers and felt the bottleneck in the third quarter of fiscal 2022 that ended in June.

Speaking at the Evercore ISI Annual Technology Conference, HP CEO Enrique Lores said the company entered this last quarter with “significant inventory in the channel,” indicating that supply chain pressures are shifting.

“Traditionally when this happens the market becomes more aggressive on pricing as the intent is to reduce inventory. And this is what we think will have an impact in the near term, we expect more price competition given how high the stocks are, especially how high stocks are for some of our competitors.


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