Microsoft said on Wednesday it does not expect to meet the third-quarter revenue forecast for its ‘more personal computing’ business, as a result of the coronavirus outbreak.
On Jan. 29, as part of the company's second quarter of fiscal year 2020 earnings call, Microsoft 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. Although Microsoft says it sees strong Windows demand in line with expectations, the 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, Microsoft does not expect to meet its 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 said.
Earlier this month, Apple also said that it may not be able to meet its March-quarter sales forecast.
Now that the world’s most valuable tech company, warned investors that it will not meet its recent guidance for its personal-computing business, the rest of the PC universe will likely follow suit.
On Thursday, Dell Technologies Inc. is expected to report earnings. Comments about demand and the supply chain in its PC and server business will be likely to include any impact the company can predict from the coronavirus. Earlier this week, when HP Inc. reported its fiscal first quarter, with slight growth in PCs and a drop in printing revenue, CEO Enrique Lores said that the situation regarding the coronavirus is fluid.
Both Intel Corp. and Advanced Micro Devices Inc.were among the companies to report early in the cycle and have not yet made any comments about the impact of the coronavirus on PC demand or the supply chain.