JP Morgan on Tuesday became the second broker in two weeks to cut Apple’s iPhone sales forecast for a crucial holiday quarter as global chip shortages and plant closures in Asia finally caught up with the tech giant.
According to analyst Samik Chatterjee in a note to clients, the brokerage has lowered its iPhone revenue forecast to $ 63 billion (roughly Rs 4.73,010) for the first quarter of fiscal 2022, representing an annual decline of nearly 4 percent.
Needham said last week that it expects iPhone 13 shipments to reach 80 million units in the first quarter and cut its estimates for the holiday quarter by 10 million units, citing supply chain problems including chip shortages.
In the fourth quarter, JP Morgan expects iPhone models to generate revenues of $ 46 billion (approximately Rs 3.45380 crore) after selling 58 million units, slightly above Wall Street’s forecast of $ 41 billion (approximately Rs 3.07840 crore) … …
According to Refinitiv IBES, analysts expect about 45 million units in the holiday quarter and 79.4 million units in the first quarter.
While Apple has weathered the supply crisis better than many other companies, thanks to its huge purchasing power and long-term supply agreements with chip suppliers, supply chain bottlenecks and isolation in countries like Vietnam are hampering its production lead times in the second half of the year. …
Bloomberg News reports. Last week, the Cupertino, California-based company is likely to cut production of its iPhone 13s by as much as 10 million units due to global chip shortages.
Customers looking to purchase an iPhone 13 are already undergoing a test of patience, analysts said, with one of the longest waiting times in recent years.
“We continue to see strong demand for the iPhone 13 and 5G iPhone SE, compared to low investor expectations as a catalyst whose lead time, while delayed by headwinds, remains unchanged,” Chatterjee said.
However, Apple said Monday that two of its new MacBook Pro models, which run on more powerful chips of their own, and the new AirPods 3 will begin shipping next week.
Wedbush analyst Daniel Ives said Apple’s announcement of hardware innovations ahead of the holidays, despite chip shortages, showed that the company was straining its supply chains.
© Thomson Reuters 2021