Microsoft's supply chain feeling effects of coronavirus

By Sean Galea-Pace
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 ch...

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.”

SEE ALSO:

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.

Follow us on LinkedIn and Twitter.

Share

Featured Articles

Logistics innovation 'hampered by C-suite, cash & staffing'

Descartes Systems Group report reveals innovation in the logistics sector is being hampered by management problems, under-investment and staffing issues

Biden appoints new supply chain risk cyber chief

US Government's Cybersecurity and Infrastructure Security Agency launches new office to protect country against malware when procuring IT services

Supply chain shocks dampening investment, says Capgemini

Report from Capgemini Research Institute shows supply chain disruption is top risk to business growth, and that sustainability efforts are on the wane

Factory fire top supply chain disruption in 2022 - Resilinc

Digital Supply Chain

Logistics news roundup: Etihad Cargo, OneRail, last mile

Logistics

Supply chain global news & views: Apple, Ukraine & Gartner

Supply Chain Risk Management