After Apple Microsoft adjusted quarterly revenue forecast due to Coronavirus

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Microsoft said it was unlikely to be able to meet its revenue targets in the first quarter of 2020 due to the Covid-19 coronavirus outbreak. In the middle of this announcement, Microsoft stocks fell 2%, reports CNBC.

We are talking about revenue in the segment, which includes sales of the Windows operating system. As Microsoft explained, despite strong demand from OC Windows, the supply chain is returning to normal more slowly than expected, so that revenues for the quarter ending in March will be lower than expected. Earlier, Microsoft predicted that the company’s revenues in this segment would range from $ 10.75 billion to $ 11.15 billion.

Microsoft derives a substantial portion of its Windows revenue from licenses from personal computer manufacturers. Production of the latter has been suspended in China as part of the fight against the spread of coronavirus.

Recall that at the end of January, Apple released a financial report for the fourth quarter of 2019 (the first quarter of fiscal 2020), which reported record revenues. The company’s revenues from October to December amounted to $ 91.8 billion, up 9% from the same period in 2018. Quarterly profit was $ 22.2 billion, which also became a record in the history of Apple.

Apple’s first-quarter 2020 revenue forecast ranged from $ 63 billion to $ 67 billion, but in mid-February, the company said it no longer expected to hit this indicator due to the suspension production in China and lower appliance sales. Apple’s adjusted revenue forecast was not.

According to recent data, more than 82000 cases of a new type of coronavirus are registered worldwide, including more than 78000 in China. More than 2.8 thousand people died from the disease and almost 33 thousand patients were cured. In recent days, the massive distribution of Covid-19 has been observed in Iran and Italy.

Source: Websites