The business of the major tech companies is in a downturn due to COVID-19 and the latest firm to join the list is Microsoft.
The Redmond based tech-giant has released a report that states – ‘The Windows and Surface Business will fail to meet the targeted sales due to the outbreak of Coronavirus.
This report was released just after the company’s share witnessed a drop of 2% in trade though Microsoft asked the investors to not panic as the situation is temporary.
Why Microsoft will fail to meet the targeted revenue?
The revenue guidance of Microsoft for the Quarter was badly affected by the COVID-19. As per the report, the revenue generation from More Personal Computing Segments that includes Windows OEM and Surface was from $10.75 to $11.15 billion, but the Coronavirus affected the supply chain as it is spread in almost 20 countries and still out of control. Microsoft did not issue further guidance and stated that the other guidance to meet on the third Quarter will remain unchanged.
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Microsoft business runs on Windows OEM, Surfaces, PC equipment, Microsoft News Advertising and more. The profit generation business is the Windows OEM and Surface, as alone they generate around 36% of net revenue.
Most Tech companies hit due to COVID-19
Microsoft is not the only tech company that missed the revenue guidance; Intel is also in the list and acts as the prime supplier of the chips. Joining the already expanding list is Dell. The company has also suffered an equivalent loss as that of Intel.
Next in the line is Apple which has also found the shortage of the sales of iPhone and due to the same; released a report stating that the company will fail to meet the revenue guidance.
Even one of the biggest trade fairs, MWC 2020, had to be canceled because most Tech companies decided to drop fearing Covid-19 infections for their traveling employees.