Reuters - J.P. Morgan became the second brokerage in two weeks to take its forecast of iPhone sales for the crucial holiday quarter as the global chip shortage and factory closures in Asia catch up with Apple Inc.
The brokerage cut its iPhone revenue estimate to $63 billion in the first quarter of fiscal 2022, which would be a year-over-year fall of nearly 4%, analyst Samik Chatterjee said in a note to clients.
Last week, Needham said it expected iPhone 13 shipments to total 80 million units in the first quarter and cut its estimates for the holiday quarter by 10 million units citing supply chain issues including the chip shortage.
For the fourth quarter, JPM expects iPhones to bring in a revenue of $46 billion after selling 58 million units, marginally higher than Wall Street's forecast of $41 billion.
According to Refinitiv IBES, analysts are expecting about 45 million units for the Holiday quarter and 79.4 millions units in the first quarter.
Although Apple has weathered the supply crunch better than many other companies due to its long-term purchasing power and massive supply agreements with chip vendors, supply chain bottlenecks and lockdown in countries like Vietnam in the second half of the year hampering its production times.
Bloomberg News reported last week that the Cupertino, California-based company is likely to have to cut production of its iPhone 13 by as many as 10 million units due to the chip shortage.
Customers desperate to buy the iOS 13 are already having to test their patience with one of the longest wait times for the phone in recent years, analysts said.
We continue to see strong demand for iPhone 13 and 5 G iPhone SE relative to lower investor expectations to act as catalyst, the timing of realization of which, though delayed on account of supply headwinds, is unchanged in magnitude, Chatterjee said.
However, Apple said on Monday that its two new MacBook Pro models, which run with more powerful chips and new AirPods 3, will start shipping next week.
Apple's announcement of hardware innovations for the holiday season despite the chip shortage showed the company was flexing its supply chain muscles, Wedbush analyst Daniel Ives said.