""We have not completed the Windows 11 transition," COO Jeffrey Clarke said during Dell's Q3 earnings call on Tuesday. Clarke said that means 500 million PCs can't run Windows 11, while the same number didn't need an upgrade to handle Microsoft's latest desktop OS. The COO therefore predicted the PC market will "flourish", but then defined the word as meaning "roughly flat" sales despite Dell chalking up mid-to high single digits PC sales growth over the last year."
"Buyers are becoming more interested in traditional servers, too, often to consolidate existing fleets into denser rigs. That means more memory and storage in each system, and a challenge for Dell given the exploding price of RAM and NAND, caused by memory-makers shifting production to the high-margin products needed to support AI workloads and reducing manufacturing capacity for more anodyne kit."
Windows 11 transition remains incomplete, leaving roughly 500 million PCs unable to run Windows 11. The PC market is expected to be roughly flat next year despite mid-to-high single-digit growth over the past year. Dell's enterprise AI hardware business showed strong momentum with $12.3 billion in AI server orders and $5.6 billion in shipments during the quarter; servers and networking revenue reached $10.1 billion, up 37% year-over-year. The five-quarter pipeline is growing sequentially across neo-clouds, sovereigns and enterprises and AI server profitability improved sequentially. Customers are consolidating fleets into denser servers, driving higher memory and storage demand and contributing to rising RAM and NAND prices.
Read at Theregister
Unable to calculate read time
Collection
[
|
...
]