Microsoft Expects Drop in Revenue from Windows and PC Business

Microsoft is unlikely to meet its sales guidance in 1Q (January-March) due to the new coronavirus infection (Corona 19).
cloud first strategy is reshaping Microsoft’s heyday.

According to CNBC’s economic media on Monday, Microsoft CEO  Satia Nadella said, “There is a strong demand for” computers “to meet our expectations, but normalization of supply chain operations is slower than expected.”

Microsoft said, “We have achieved guidance for the business sector that includes Windows in the first quarter (the third quarter by Microsoft’s own standards) as the Windows OEM (Original Equipment Manufacturers) and Surface (MS laptop and tablet brands) surfaces are negatively affected. I do not expect it. ”

In addition to Windows and Surface, the business unit includes PC accessories, gaming and search and messenger advertising. Windows OEM also sells Windows licenses to laptop and computer manufacturers.

In the fourth quarter of last year’s earnings announcement, Microsoft presented revenue guidance for the Windows-related business in the first quarter, ranging from $ 10.7 billion to $ 11.5 billion. It was broader than usual to reflect the public health crisis under Corona19.
Microsoft did not provide revised guidance that day, saying the guidance for the rest of the business is still valid.

Earlier, Apple said it would not meet its previous quarterly sales forecasts due to the impact of Corona 19 on the 17th of this month. HP, one of the largest manufacturers of Windows PCs, also said that companies’ Windows 10 updates could move to Q2 due to production constraints following the Corona 19 incident.

 

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Microsoft is unlikely to meet its sales guidance in 1Q (January-March) due to the new coronavirus infection (Corona 19). cloud first strategy is reshaping Microsoft's heyda

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