Apple sells fewer iPhones due to chip crunch

JPMorgan has become the second brokerage firm to cut its forecast in two weeks for Apple’s iPhone sales for the holiday quarter. That’s as the effects of a global chip shortage and factory closures in Asia have hit the tech giant.

said the analyst Samik Chatterjee In a note to clients, the brokerage firm cut its estimate of iPhone revenue to $63 billion for the first quarter of fiscal 2022, which represents an annual decline of nearly 4 percent.

Last week, Needham said it expects iPhone 13 shipments to total 80 million units in the first quarter.

Needham lowered its estimate for the holiday quarter by 10 million units due to supply chain issues, including chip shortages.

And for the fourth quarter. JPMorgan expects iPhones to generate $46 billion in revenue after selling 58 million units. It is marginally higher than Wall Street’s forecast of $41 billion.

According to Refinitiv IBES data, analysts expect about 45 million units to be sold for the holiday quarter and 79.4 million units to be sold in the first quarter.

While Apple has weathered the supply crunch better than many other companies. This is due to its massive purchasing power and long-term supply agreements with chip vendors.

But supply chain problems and shutdowns in countries like Vietnam in the second half of the year are hampering production schedules.

Bloomberg reported last week that the Cupertino, California-based company is likely to cut production of the iPhone 13 by up to 10 million units due to a global chip shortage.

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Apple forced to reduce sales due to chips

Analysts said that customers who want the iPhone 13 are having their patience tested with one of the longest waiting times for the phone in recent years.

While Chatterjee said, “We continue to see strong demand for the iPhone 13 and 5G iPhone SE compared to the low expectations of investors.”

However, Apple said that two new MacBook Pro models, which are powered by more powerful internal chips, and the new AirPods 3, will begin shipping next week.

Wedbush analyst Daniel Ives said Apple’s announcement of new devices for the holiday season despite the lack of chips shows that it has been showing off the capabilities of its supply chain.

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