Feb 27, 2020

Coronavirus: Microsoft warns of hit to computer sales

Microsoft is the latest major company to warn of a disruption as China grapples with the coronavirus outbreak. This delay could hit sales of its personal computing business including Surface laptops and tablets, Microsoft warned. Microsoft said factories are re-opening across China, but this is happening slower than expected. The Microsoft announcement highlights a growing problem for tech firms that rely on a complex network of suppliers in China for real-time deliveries of crucial parts. "With Apple the first one of the tech bellwethers to confirm the damaged supply chain post the coronavirus outbreak last week, it should not be a shocker PC business is going to be under near-term pressure related to supply chain issues in the region," said Wedbush Securities analysts Daniel Ives and Strecker Backe in a note.

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