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Microsoft says supply chain slowed by virus outbreak

FILE - In this Jan. 28, 2020, file photo a Microsoft computer is among items displayed at a Microsoft store in suburban Boston. Microsoft says its supply chain is being hurt by the virus outbreak in China and will return to normal operations at a slower pace than it expected a month ago. (AP Photo/Steven Senne, File)

REDMOND, Wash. — Microsoft says its supply chain is being hurt by the virus outbreak in China and will return to normal operations at a slower pace than expected.

Microsoft had predicted it would make between $10.75 billion and $11.15 billion in revenue from its personal computing segment in the current fiscal quarter. That was based on “a wider than usual range to reflect uncertainty related to the public health situation in China,” the company said Wednesday.

But Microsoft says the supply chain for its Windows licenses and Surface hardware businesses “are more negatively impacted than previously anticipated.” Thus, the company says it doesn’t expect to meet that target.

Last week, Apple warned investors that it won’t meet its second-quarter financial guidance because the viral outbreak in China has cut production of iPhones. The Cupertino, California-based company said all of its iPhone manufacturing facilities in China have reopened, but production is ramping up slowly. The company said demand for iPhones was also down in China because Apple’s retail stores are closed or operating with reduced hours.

The Associated Press