Microsoft says global chip shortage will constrain Windows and Surface

Microsoft has warned that the worldwide chip shortage, which has affected the production of smartphones, laptops, and other internet-connected devices, will continue into next year before the industry starts to recover.

In the company’s fourth-quarter earnings call Microsoft’s chief financial officer Amy Hood said that its Surface and Windows revenue had been affected dramatically by supply-chain issues.

“Windows Commercial, gaming and search [was] offsetting OEM [original equipment manufacturer] and Surface weakness from supply chain constraints”, Hood said, with Surface revenue dropping by up to 23 per cent due to the impact of the “significant supply chain constraints noted earlier in a good demand environment”.