Microsoft predicts PC sales are down in Q4 2011

Microsoft obviously would love to have lots of people purchasing desktop and notebook PCs with its Windows 7 operating system inside. Now the head of investor relations for the company, Bill Koefoed, has issued a warning that could signal some troubles ahead for Microsoft and it's all due to a now familiar problem.

According to Business Insider, Microsoft had expected to see a rise of 5 percent for PC sales during the last quarter of 2011. However, the floods in Thailand which shut down a number of hard drive factories in that country have now caused Microsoft to predict that worldwide PC sales will actually be slightly lower than sales in the fourth quarter of 2010. The news caused a big drop in Microsoft's stock price in after hours trading on Tuesday

The good news? Koefoed believes that the flooding issues will be a thing of the past very soon as far as the PC industry is concerned. Indeed he stated that "some vendors have talked about how they're recovering faster than expected." Hopefully the PC parts shortages will be solved in the coming months.

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The increase in prices for these things IMO is way out of control. Just because the supply has gone down the value or the costs of production of the current drives in stock at vendors like newegg and tigerdirect shouldn't have caused them to increase as they did. This reminds me of how fuel prices are effected by something thousands of miles away yet the fuel in the tanks at the stations are already paid for and sitting there. If you wish to pass on the added costs then do it AFTER you purchase a new supply if the manufacture has raised them if need be.

I was putting my card details in to buy my new PC when I noticed the price had jumped £60 in the space of day due to the floods, I'm holding off till this HDD surcharge is scrapped.