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| Microsoft's earnings may slow due to corona virus |
The spread of the Corona virus can delay the expected growth in Microsoft operating system revenue from Microsoft because computer manufacturers are delaying the construction of new commercial computers that come with the operating system.
Microsoft is the flagship driver for the S&P 500. With the strong sale of Windows licenses for commercial computers, companies scrambled to update their hardware before they stopped supporting Windows 7 in January.
This upward trend could have continued, but factory closures in China may delay sales in the following seasons as Microsoft receives 15% of Windows sales and 40% of Windows sales through commercial hardware licenses.
Amy Hood, Microsoft's chief financial officer, told analysts that on January 29, Microsoft released more than the usual first quarter forecast for the personal computing industry, including Windows, to learn about its presence in China. Change.
Hood said: "The growth in personal computing revenue should reflect the demand for Windows 10 and the end of Windows 7 support."
Because of the Corona virus, Apple made more expectations than expected in January, and the company announced on February 17 that it did not expect to meet expectations.
Computer manufacturers recently provided much evidence that things are not as usual: Hewlett-Packard (HP) is the world's second largest computer manufacturer after Lenovo. Years.
Steve Feller, HP's chief financial officer, said the company expects the Corona virus in the second quarter and that China's operations will affect supply and demand.
"Most of Lenovo's factories in China have reopened," said Yang Yuanqing, Lenovo's chief executive, but he warned that supply would be limited this quarter and said global PC demand was very good and perhaps not for the first time. The quarterly offer in the industry was sufficient to meet this demand.