Apple to Sell Fewer iPhone Handsets as Chip Crisis Bites, JP Morgan Says

For the fourth quarter, JP Morgan expects iPhone sales to bring in revenue of $46 billion (roughly Rs. 3,45,380 crores).

Apple to Sell Fewer iPhone Handsets as Chip Crisis Bites, JP Morgan Says

JP Morgan trimmed its iPhone revenue estimate to $63 billion (roughly Rs. 4,73,010 crores) 

Highlights
  • Analysts are expecting about 45 million iPhone units for holiday quarter
  • Apple has weathered the supply crunch better than many other companies
  • Customers wanting an iPhone 13 are having their patience tested

JP Morgan on Tuesday became the second brokerage in two weeks to cut its forecast for Apple's iPhone sales for the crucial holiday quarter as the global chip shortage and factory closures in Asia finally catch up to the technology giant.

The brokerage trimmed its iPhone revenue estimate to $63 billion (roughly Rs. 4,73,010 crores) for the first quarter of fiscal 2022, which would be a yearly fall of nearly 4 percent, 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, JP Morgan expects iPhone models to bring in revenue of $46 billion (roughly Rs. 3,45,380 crores) after selling 58 million units, marginally higher than Wall Street's forecast of $41 billion (roughly Rs. 3,07,840 crores).

According to Refinitiv IBES, analysts are expecting about 45 million units for the holiday quarter and 79.4 million units in the first quarter.

While Apple has weathered the supply crunch better than many other companies due to its massive purchasing power and long-term supply agreements with chip vendors, supply chain bottlenecks, and lockdown in countries like Vietnam in the second half of the year are hampering its production timelines.

Bloomberg News reported last week that the Cupertino, California-based company is likely to slash production of its iPhone 13 by as many as 10 million units due to the global chip shortage.

Customers wanting an iPhone 13 are already having their patience tested 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 5G iPhone SE relative to low investor expectations to act as a catalyst, the timing of realisation of which, although delayed on account of supply headwinds, is unchanged in magnitude," Chatterjee said.

However, Apple said on Monday that its two new MacBook Pro models, that run on more powerful in-house 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.

© Thomson Reuters 2021


Realme India CEO Madhav Sheth joins Orbital, the Gadgets 360 podcast for an exclusive wide-ranging interview, as he talks about the 5G push, Make in India, Realme GT series and Book Slim, and how stores can improve their standing. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
  • Design
  • Display
  • Software
  • Performance
  • Battery Life
  • Camera
  • Value for Money
  • Good
  • Great performance
  • Versatile cameras
  • Sharp, bright display
  • Good battery life
  • Bad
  • Standard display refresh rate, intrusive notch
  • Expensive
Display 6.10-inch
Processor Apple A15 Bionic
Front Camera 12-megapixel
Rear Camera 12-megapixel + 12-megapixel
Storage 128GB
OS iOS 15
Resolution 1170x2532 pixels
Advertisement
  • Design
  • Display
  • Software
  • Performance
  • Battery Life
  • Camera
  • Value for Money
  • Good
  • Great performance
  • Versatile cameras
  • Sharp, bright display
  • Very portable and convenient
  • Bad
  • Standard display refresh rate, intrusive notch
  • Expensive
  • Average battery life
Display 5.40-inch
Processor Apple A15 Bionic
Front Camera 12-megapixel
Rear Camera 12-megapixel + 12-megapixel
Storage 128GB
OS iOS 15
Resolution 1080x2340 pixels
  • Design
  • Display
  • Software
  • Performance
  • Battery Life
  • Camera
  • Value for Money
  • Good
  • Bright, crisp 120Hz display
  • Excellent construction quality
  • Stellar battery life
  • Great overall performance
  • Versatile cameras
  • Bad
  • Extremely expensive
  • Bulky and heavy
  • Display notch in 2021
Display 6.70-inch
Processor Apple A15 Bionic
Front Camera 12-megapixel
Rear Camera 12-megapixel + 12-megapixel + 12-megapixel
Storage 128GB
OS iOS 15
Resolution 1284x2778 pixels
  • Design
  • Display
  • Software
  • Performance
  • Battery Life
  • Camera
  • Value for Money
  • Good
  • Bright, crisp 120Hz display
  • Excellent construction quality
  • Good battery life
  • Great overall performance
  • Versatile cameras
  • Bad
  • Extremely expensive
  • Bulky and heavy
  • Display notch in 2021
Display 6.10-inch
Processor Apple A15 Bionic
Front Camera 12-megapixel
Rear Camera 12-megapixel + 12-megapixel + 12-megapixel
Storage 128GB
Battery Capacity 3095mAh
OS iOS 15
Resolution 1170x2523 pixels
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Apple, iPhone, JP Morgan, iPhone 13
Google May Face Fine of Up to 20 Percent of Annual Turnover in Russia Over Failing to Delete Illegal Content
Lava Probuds N1 Neckband-Style Earphones With Up to 30-Hour Playback Time Launched in India

Related Stories

Share on Facebook Tweet Snapchat Share Reddit Comment
 
 

Advertisement

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2021. All rights reserved.
Listen to the latest songs, only on JioSaavn.com