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Microsoft Revises its Revenue Guidelines for Q1 Owing to Coronavirus Outbreak

Microsoft to miss sales forecast due to COVID-19 outbreak

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Microsoft has revised its revenue guidelines for its January-March quarter owing to Coronavirus (COVID-19) outbreak. Pixabay

After Apple, Microsoft has revised its revenue guidelines for its January-March quarter owing to Coronavirus (COVID-19) outbreak, saying the supply-chain has been slowed down which will impact its Windows and Surface businesses.

In a statement, the company said although it sees strong Windows demand in line with its 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. All other components of our Q3 guidance remain unchanged, the company said late Wednesday.

Microsoft
In its second quarter (October-December period), Microsoft reported revenue of $36.9 billion and a profit of $11.6 billion. Surface revenue for the quarter was up 6 per cent (year over year) to $1.9 billion. Pixabay

On January 29, Microsoft issued quarterly revenue guidance for its ‘More Personal Computing’ segment between $10.75 and $11.15 billion, which included a wider than usual range to reflect uncertainty related to the public health situation in China.

“As the conditions evolve, Microsoft will act to ensure the health and safety of our employees, customers, and partners during this difficult period,” said the company, adding that it would continue to partner with local and global health authorities to provide additional assistance.

In its second quarter (October-December period), Microsoft reported revenue of $36.9 billion and a profit of $11.6 billion. Surface revenue for the quarter was up 6 per cent (year over year) to $1.9 billion.

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Apple last week warned that coronavirus outbreak will affect its business in the January-March quarter as worldwide iPhone supply will be temporarily constrained.

“Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors,” the company said in a statement. (IANS)

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India’s Lockdown Disrupts Functioning of Amazon and Flipkart

Amazon India Delivery and functioning of Essential Goods via. E-commerce companies Disrupted

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Virus Outbreak Amazon
India's coronavirus lockdown is disrupting e-commerce companies including Amazon and Flipkart. Pixabay

India’s coronavirus lockdown is disrupting e-commerce companies including Amazon and Flipkart, despite government assurances it would not, four sources familiar with the matter told Reuters.

Differing state and district level regulations relating to the 21-day lockdown, which began on Wednesday, are hindering operations, the sources said on Friday, with e-commerce firms finding it difficult to get curfew passes for delivery staff.

The disruptions highlight the difficulties of ensuring the supply of essential goods to 1.3 billion people during the shutdown in India, which has so far reported 724 cases of coronavirus and 17 deaths. Most of Amazon’s 60 plus fulfillment centers in India are shut and the U.S. company is in talks with state authorities to try to reopen them, three of the sources said. Industry executives say local authorities have not followed guidelines, stopping deliveries and warehouses from operating.

Virus Outbreak Amazon
A sign is lit on the facade of an Amazon fulfillment center. VOA

“It’s worse than one can think,” one source said, while a second added that only a “miniscule” number of Amazon warehouses were operating, citing this as a key reason for disruptions. Even when operations do begin to return to normal, it will only be in major cities, the second source added.

Amazon said in a statement that its top priority was to deliver the products which customers need the most and it was seeking urgent help from federal government and local authorities with detailed on-the-ground operating procedures. In New Delhi, Amazon’s Pantry service was suspended and the delivery slot for essential goods, such as oil and soaps, was shown as being April 26.

“There are clear guidelines provided by Government to enable essential services, and so we are working with the relevant authorities to ensure we are able to operate,” Amazon said on Twitter in response to questions from users in India.

Indian trade minister Piyush Goyal held a meeting with e-commerce executives on Thursday and said the government was “committed to ensuring that essential goods reach the people.”

Also Read- Effects of Quarantine on Mental Health and Relationships

Walmart-owned Flipkart has also been hit, with some grocery items which had been available earlier on Friday in New Delhi intermittently going out of stock. A source familiar with the situation said Flipkart was facing challenges with last-mile delivery of goods once they leave its warehouse due to restrictions on movement.

Flipkart said in a statement it had resumed grocery operations and there was a significant spike in orders. “We are enhancing capacity to meet the increase in customer requirements,” it said, adding it had received support from local and federal authorities.  (VOA)