Microsoft CEO Satya Nadella said Tuesday that the hardware supply chain is coming back online as the coronavirus outbreak eases up in Asia, but said that the big question would be whether demand holds up in the U.S. and Europe.
"On the supply side we are getting back on rails," Nadella told CNBC's Jon Fortt when asked about whether Microsoft would be able to deliver later this year certain products it had promised before COVID-19 took hold, like new Surface devices and a revamped Xbox gaming console.
"We have a great balance sheet, we are a very diverse business, we have a mix of annuity, non-annuity, that is also stronger than even the last time we even went into the financial crisis," he said. "I feel confident we'll come out of this, frankly, pretty strong."
He said the company's cloud infrastructure and services have been holding up under increased demand.
"If this was a previous generation of data center architectures or software architectures, I don't think we would have been able to deal with this crisis as effectively as we have been able to," Nadella said.
Microsoft CEO Satya Nadella said the bigger concern is demand in developed markets, and he said he would favor economic stimulus from the U.S. government.