Remote Work Lifts Notebooks, Hurts Micron, CEO Says

“The work-from-home trend drove strong demand for notebooks” in the quarter ended Sept. 3, “with pockets of non-memory component shortages in the supply chain,” said CEO Sanjay Mehrotra on a call. The unanticipated spike in consumer demand for laptops as telework and remote-learning connectivity tools crimps CPU and LCD display panels supply. “End-market component shortages” in the PC supply chain have “some impact on the demand” when OEMs aren't “able to procure all the components they need for their notebook and Chromebook builds,” Mehrotra said Tuesday. Desktop PC sales are weak “due to pandemic-driven changes to customer buying patterns,” said Mehrotra. “Laptop demand continues to be healthy, supported by the work-from-home and shop-from-home trends." Gaming PC demand is “robust,” he said. Micron’s “short-term outlook has weakened due to a combination of factors," he said. “The ongoing pandemic is taking a toll on certain segments of the economy,” including the physical workspace, he said. Enterprise demand has weakened due to lower tech spending and “somewhat higher inventories at certain customers,” he said. The stock closed down 7.4% Wednesday at $46.96. Executives also discussed Huawei (see 2009300035).