Microsoft warns lower PC sales will hit Windows division


Microsoft warns lower PC sales will hit Windows division

Simon Quicke

Microsoft has warned that lower PC shipments, which it blames on the hard disc drive shortage sparked by the Thailand floods, is going to be felt in its Q2 results.

The vendor has warned that revenues in its Windows division will be lower than expected a s result of the floods, which had a major impact on the industry in the last quarter of last year.

Not only has the flood caused damage to activity at the end of last year but it is also set to continue with the vendor warning it is expecting it to take several quarters to get back to normal.

The results are expected from the vendor late next week but the warning should help remove the element of a nasty surprise when analysts and investors pore over the numbers from the Windows division.

Speaking at an event at CES, Bill Koefoed, Redmond's general manager of investor relations, was quoted as saying: "As the numbers come out, you'll likely see that number decline further as the impact has been felt faster than people had anticipated."

The latest Gartner figures reveal that not only have the Thai floods had an impact on the PC market but it continued to decline globally because of the ongoing economic uncertainty that continues to cause problems across Europe.

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