Dell Founder Confident PC Demand Surge Not Due to ‘Double Ordering’
The average notebook PC's “refresh cycle” is roughly a year and a half “quicker” than for desktops, creating demand that's compounding the public’s hunger for laptops for remote work and learning connectivity, Dell Technologies founder-CEO Michael Dell told a Bernstein…
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virtual investor conference Wednesday. Average selling prices for notebooks “are going up as people want bigger displays and more capable systems,” he said. “The oldest PC in your house can't really do a Zoom meeting.” Dell is confident that demand in the PC supply chain is genuine and not the result of “double ordering,” he said. “The thing that we watch very closely is the cancellation rate of orders in the backlog.” As lead times increased, “we have not seen cancellation rates go up, and so we are delivering record numbers of PCs and the output continues to grow,” he said. “If you were going to see double ordering, you would also see cancellations coming through the backlog. We're just not seeing that.” Backlogs “are certainly higher than normal, higher than we would like, and the pricing environment has been kind of what you would expect in a situation like this,” said Dell.