Microsoft isn't too worried about Intel's CPU shortage as long as PCs can run Windows

Microsoft isn't too perturbed about Intel CPU shortages anymore. (Source: CNN)
Microsoft isn't too perturbed about Intel CPU shortages anymore. (Source: CNN)
In a recent FY19 Q3 earnings call, Microsoft expressed optimism about growth of Windows sales in the enterprise and has also eased up on worries about sales in the consumer segment, which the company said in January was affected due to Intel's 14 nm supply woes. The increased growth of AMD CPUs in mainstream desktops and laptops, and the ability of Windows 10 to run on ARM hardware means that Microsoft does not have to rely on Intel to push Windows sales.

Intel's CPU shortages have affected many vendors including Asus, HP, Lenovo, and even Microsoft who said in January that low shipment volumes of 14 nm chips has affected Windows license sales. This week, the Redmond-giant held a call about its FY19 Q3 earnings and felt that Intel's CPU shortage is no longer a cause for worry and expressed optimism for Q4.

Microsoft CEO Satya Nadella said that Windows is already installed on 800 million devices and continues to do well in the enterprise as the "most secure and productive operating system". Earlier this month, Gartner reported that worldwide consumer PC shipments for Q1 2019 have gone down due to Intel's supply woes but the enterprise was relatively unaffected, which explains Nadella's assessment of Windows sales in this sector.

While Intel's supply constraints are expected to intensity in the next quarter, Microsoft's executive VP and CFO Amy Hood doesn't see Intel's CPU shortage as much of a "pent up situation heading into Q4". She said,

We feel good about the supply in the Commercial segment and the Premium Consumer segment, which is where the vast majority of our revenue is in OEM. And so I think in those segments, we feel fine for Q4"

Microsoft's optimism is not without reason and frankly, the company does not seem to be much bothered as long as any given hardware can run Windows. AMD has made good inroads into the mainstream desktop market and has also made perceivable progress in the laptop space. Windows 10 on ARM has led ARM chip makers like Qualcomm to offer dedicated SoCs although, the market hasn't really managed to take off as expected.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2019 04 > Microsoft isn't too worried about Intel's CPU shortage as long as PCs can run Windows
Vaidyanathan Subramaniam, 2019-04-28 (Update: 2019-04-28)
Vaidyanathan Subramaniam
I am a cell and molecular biologist and computers have been an integral part of my life ever since I laid my hands on my first PC which was based on an Intel Celeron 266 MHz processor, 16 MB RAM and a modest 2 GB hard disk. Since then, I’ve seen my passion for technology evolve with the times. From traditional floppy based storage and running DOS commands for every other task, to the connected cloud and shared social experiences we take for granted today, I consider myself fortunate to have witnessed a sea change in the technology landscape. I honestly feel that the best is yet to come, when things like AI and cloud computing mature further. When I am not out finding the next big cure for cancer, I read and write about a lot of technology related stuff or go about ripping and re-assembling PCs and laptops.