While there is debate about whether coronavirus (COVID-19) will become a world-defining health outbreak, the reality is the virus is already affecting the economy. With many predicting a potential economic collapse, Microsoft has been forced to reassess its financial outlook.
Microsoft confirmed this week it will now miss its financial estimates across its personal computing business for its fiscal third quarter. That guidance was originally offered earlier this year before coronavirus broke out.
Personal computing is the division that includes money made from Surface devises and Windows licenses. Microsoft says the cause of the recalculation is due to supply chain constraints following
“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,” Microsoft said in a press release.
Microsoft has not offered an updated guidance. The company probably wants to see how the outbreak will continue to impact its supply chain. However, the company confirmed it does “not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated.”
In a release on Wednesday, Redmond said its donated money to help relief efforts around coronavirus. Furthermore, the company says it is working with health groups to help keep its global workforce safe.
Yesterday, the company cancelled an upcoming Ignite The Tour event in Hong Kong.
Mobile World Congress 2020 was also cancelled due to health concerns surrounding coronavirus. That cancellation also impacted Microsoft has the company had planned mixed reality sessions at the conference.
Last week, Microsoft announced a Mixed Reality Dev Days to replace MWC. The event will be held before Build 2020 in May.