Microsoft doesnt expect to meet sales guidance on Windows and Surface computers due to coronavirus

Microsoft doesnt expect to meet sales guidance on Windows and Surface computers due to coronavirus

Microsoft said Wednesday it no longer expects to meet the revenue guidance it issued less than a month ago, due to the coronavirus’s impact on its supply chain.

The tech giant had announced third quarter revenue estimates of $10.75 billion to $11.15 billion on January 29. Those numbers are no longer accurate because Windows and Surface laptops are “more negatively impacted than previously anticipated,” the company said

While Microsoft (MSFT) said it has seen strong Windows demand, its supply chain is recovering more slowly than anticipated. Chinese manufacturers closed factories during the Lunar New Year holiday but the closure was extended by weeks as the coronavirus began to spread through the country. While some factories have reopened, Microsoft said it may take a while to resume normal operations.

Microsoft’s announcement comes a week after Apple warned that it no longer expects to meet its previous revenue guidance for the upcoming March quarter, citing “a slower return to normal conditions than we had anticipated.”

Source: CNNBusiness

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