Microsoft has warned that fourth-quarter PC sales are likely be lower than analysts feared, because of supply chain problems caused by the Thai floods.
In a report on news site Bloomberg, Tami Reller, chief financial officer at Microsoft's Windows division, said market watchers have predicted a one per cent decline in Q4 PC shipments. However, the actual number could be lower.
"It tends to take a few quarters to work its way through the system," she said. "It would be naive to believe otherwise."
Her view was backed by Bill Koefoed, the vendor's general manager of investor relations, while addressing attendees at the Consumer Electronics Show in Las Vegas.
"As the numbers come out, you will likely see [them] decline further as the impact [of the floods] has been felt faster than people had anticipated," said Koefoed.
Both execs were speaking ahead of the release of Microsoft's Q2 results next week.
Angela Eager, research director for enterprise software and application services at analyst TechMarketView, said a fall in PC shipments could spell disaster for the firm.
"This is bad news for the Windows division, whose fortunes are closely aligned with PC sales, because Windows sales have declined for several quarters now, largely due to the rise of mobile devices," she said.
"The Thailand effect exacerbates the situation [and] this all bodes badly for Microsoft's Q2 results," she added.
Infrastructure provider says international sales now make up 51 per cent of its revenue
Suzanne Chappell of TMS plans sailing venture after selling Oxfordshire-based TMS to acquisitive Chess
Withdrawal of credit insurance by some providers a 'reflection' of current challenge facing IT sector, according to MD Steve Soper
SMART's UK managing director joins Lenovo to boost SMB business