Microsoft Says Coronavirus Will Impact Revenues

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.”

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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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Conversation 5 comments

  • BoItmanLives

    27 February, 2020 - 1:25 am

    <p>Convenient scapegoat </p>

    • anoldamigauser

      Premium Member
      27 February, 2020 - 11:52 am

      <blockquote><em><a href="#523625">In reply to BoItmanLives:</a></em></blockquote><p>Yes, because non of the products they sell, or that include a license for their operating system, are produced in a country that is effectively shut down because of the Corona virus.</p><p><br></p>

      • Jeffsters

        01 March, 2020 - 2:35 pm

        <blockquote><em><a href="#523704">In reply to AnOldAmigaUser:</a></em></blockquote><p>Not discounting your sentiment but those products are a very small percentage of their overall revenue.</p>

  • derylmccarty

    Premium Member
    27 February, 2020 - 2:13 am

    <p>Meaning SB3 or some of the other devices promised for the Spring delayed?</p>

  • rohitnegi644

    05 March, 2020 - 10:16 am

    <p>China is a <a href="https://flamingleo.blogspot.com/&quot; target="_blank">superpower </a>and they play a very big contribution in electronics and software department.If their economy will go down then definitely we can see its impact in many multinational companies.</p>

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