Microsoft Execs Warn PC Industry Outlook May Be Worse Than Feared

Microsoft executives warned that industry analysts’ expectations for a 1 percent decline in fourth-quarter personal-computer shipments may be too optimistic, as the aftermath of flooding in Thailand disrupts the supply of a key computer component.

The remarks suggest PC makers continue to struggle with production issues stemming from Thailand’s worst flooding in decades, which had caused the shutdown of a large chunk of the world’s hard-disk drive manufacturing operations. Meanwhile, the rise in tablets is weighing on demand for PCs and economic concerns are mounting, in part because of Europe’s debt problems.

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