The shortage of processors, which hit the entire computer market hard in the second half of last year, is weakening, according to Microsoft based on its observations of sales of Windows operating systems and Surface devices.
During yesterday's report for the third quarter of the 2019 fiscal year, Microsoft CFO Amy Hood stated that the PC market has shown clear signs of recovery over the past three months, despite previously expressed gloomy forecasts. "Overall, the PC market performed better than we expected due to improvements in chip supplies in both the commercial and premium consumer segments compared to the second fiscal quarter on one hand, and higher-than-expected deliveries in the completed third fiscal quarter on the other," she said. Additionally, Amy Hood expressed confidence that the availability of processors would continue to stabilize in key segments for the company over the next quarter.
Recall that back in January, Amy Hood's statements had a completely different tone and sounded more like complaints about the processor shortage that had undermined the entire PC market. At that time, she indicated that the supply shortfalls of processors had seriously harmed the entire industry, from large OEMs to small manufacturers.
It is worth noting that in the latest statements from Microsoft's CFO, the name Intel was not specifically mentioned, but there is no doubt that the discussion was about the supply shortfalls of this particular producer. Technological issues and planning errors have resulted in Intel being unable to meet the demand for its processors since the second half of last year, leading to an ongoing shortage and price increases.
At the same time, Microsoft derives the majority of its profit from software sales that can perform equally well on both Intel and AMD processors. Therefore, the signs of market recovery observed by the company may not only be related to Intel's efforts to eliminate shortages but also to the fact that major players have adapted to the situation and are showing increased interest in systems built on AMD processors, as indirectly confirmed by the growth of this company's market share.
Regardless, the worst seems to be behind us. While the shortage of Intel processors has been an unpleasant event for many players in the PC market, it has indirectly contributed to creating a more competitive environment. Although the issues faced by one processor manufacturer caused the entire market to decline, it seems that, in the long term, no negative consequences are now expected. At least, this is the message Microsoft attempted to convey to investors.
Source: 3dnews.ru
