Windows Revenue To Take A Hit Due To Corona Virus

Corona Virus

Hmm. Like many other companies, Microsoft is also expected to see some negative downturns due to the Corona virus outbreak. Or rather, Covid-19, as it is now called.

This raging threat is already the cause of several ripples in the technology industry, including dips in sales and cancelations of events. And it now looks like it will also take its toll on the PC hardware market, as a whole.

So much so, that Microsoft has announced that Windows revenue will suffer due to this.

When the company released its earnings report for the second quarter of the fiscal year 2020 at the end of January, it forecasted third quarter number between $10.75 and $11.75 billion in revenue from the More Personal Computing category, which is mostly comprised of Windows licensing income.

That was then.

But even that cautious forecast has been revised due to the significant developments across the planet recently. More specifically, the supply chain is taking longer than expected to start back up.

And this essentially means that the company will not be able to sell as many Windows licenses as it had hoped.

Microsoft makes it clear that its other business categories are unaffected, and it is not changing the guidance for those. Then again, More Personal Computing is still the biggest source of revenue for the Redmond based software giant, and the negative impact will certainly make a difference.

The bigger question that remains to be answered, however, is how long will it take for thing to get back to normal.

Let’s hope we don’t have to wait too long for this answer!

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