Microsoft Says Coronavirus Will Impact Revenues

Posted on February 26, 2020 by Paul Thurrott in Hardware, Microsoft, Microsoft Surface, Windows 10, Xbox One with 5 Comments

Microsoft today warned that the Coronavirus outbreak will impact the revenues of its More Personal Computing business segment in the current quarter.

“We [previously] issued quarterly revenue guidance for our More Personal Computing segment between $10.75 and $11.15 billion, which included a wider than usual range to reflect uncertainty related to the public health situation in China,” a Microsoft statement notes. “Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated … As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated. All other components of our Q3 guidance remain unchanged.”

Microsoft’s revised guidance follows a similar warning from Apple, which, like Microsoft and its PC maker partners, is heavily dependent on hardware anufacturing in China, the source of the Coronavirus, or COVID-19. So this change isn’t entirely unexpected, given recent news of the rapid spread of this health emergency.

Microsoft hasn’t provided any new guidance for its More Personal Computing segment, which makes sense since the outbreak is ongoing and it’s not yet clear how or when it may end. More Personal Computing is responsible for Windows, Surface, and Xbox.

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