“While we saw strong demand for Windows — which was in line with our expectations — our supply chain returned to normal operations at a slower pace than our second-quarter earnings call,” Microsoft said in Wednesday’s statement, according tomedia Wccftech. As expected at the time of the meeting. As a result, production capacity recovery for Windows OEM and Surface products will also be slower than expected, and we expect that the third quarter of fiscal 2020 may not meet the previous revenue guidance for the PC business (Revenue Guidance).”
Relevant analysts also noted that Microsoft’s personal computer business revenue guidance value of $ 10.75 billion to $ 11.15 billion. The uncertainty in this value is higher than in previous years, which also reflects the uncertainty that the current novel coronavirus outbreak has brought to the market. Also note that Microsoft’s Windows OEM revenue comes from the sale of Windows licenses for commercial and non-commercial PCs.
The news is just one of many such announcements that Microsoft has been updating recently.
Last week, Apple announced that it would also miss its quarterly revenue forecast due to supply chain disruptions and a drop in demand in China due to the novel coronavirus outbreak. Apple initially expected its second-quarter net sales to be between $63 billion and $67 billion, and Apple has yet to update its quarterly revenue forecast.
As the second-largest PC maker after Lenovo, HP also announced this week that the outbreak of the new coronavirus has simultaneously and greatly affected China’s supply system and sales market, which will bring a negative impact on its revenue and profit. negative impacts.
“Given some of the issues we’ll see in the second quarter, the outbreak of the novel coronavirus may ultimately be delayed,” HP CFO Steve Fieler said on an earnings call earlier this week. Update time for Windows 10.”
Likewise, Lenovo CEO Yang Yuanqing said on a conference call this week that while most of its factories in China have begun to reopen, the supply situation is still quite severe this quarter.
Nvidia estimated the impact of the new coronavirus on its revenue and noted that actual revenue may be reduced by $100 million compared to previous revenue guidance. According to the company, the outbreak could also affect the way consumers spend as quarantines expand and some businesses close.
Speaking of which, we have to go back to the semiconductor giants Intel and AMD. On Monday, Instinet LLC analyst David Wong warned that the risks to the global semiconductor industry from the novel coronavirus outbreak have increased in recent weeks: “We think many investors and companies may still be underestimating the potential impact of the current outbreak on 2020. The impact of Electronic end market demand in 2018. We believe that although there is still great potential in the consumer-related end purchase market, demand in most electronic end markets is still variable. We are generally cautious on the chip industry and accordingly We are also cautious about our chips and chip equipment stock selection.”
Both Intel and AMD report their revenue guidance very early, but have not updated it as of now, especially since the outbreak. However, the market seems keenly aware of the possibility of such announcements in the coming days, with shares of Intel and AMD both falling after Microsoft updated its revenue guidance yesterday, with AMD stock down 1.5%, while Intel shares fell 1.61%.
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