#Supply Chain

Microsoft's supply chain feeling effects of coronavirus

Microsofthas revealed that it is set to miss its revenue target for a key segment in the third quarter due to the coronavirus’ impact on its supply chai...

Sean Galea-Pace
|Feb 27|magazine8 min read

Microsoft has revealed that it is set to miss its revenue target for a key segment in the third quarter due to the coronavirus’ impact on its supply chain.

In January, the tech giants confirmed its “More Personal Computing” segment would earn between US$10.7bn and $11.1bn in third quarter revenue. Microsoft revealed that it was a “larger than usual” range that reflects uncertainty related to the deadly virus.

In a press release on 26 February, Microsoft stated: “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 at the time of our Q2 earnings call. 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.”

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Microsoft is the latest global company to announce the effects of the coronavirus on operations. As reported on Supply Chain Digital in yesterday’s article, other global organisations such as Apple, McDonald’s and Burberry are experiencing significant disruption.

The press release continued: “As the conditions evolve, Microsoft will act to ensure the health and safety of our employees, customers, and partners during this difficult period. We will also continue to partner with local and global health authorities to provide additional assistance. We deeply appreciate the commitment of the people and organisations that have united to address this health emergency; our thoughts are with all those affected across the world.”

Find out how the coronavirus is impacting three other global supply chains here!

For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.

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