Oct 13 (Businesshala) – Global chip shortages may be making their way to Apple’s latest iPhone 13 smartphone, but analysts expect the technology giant to leave any lost ground with a strong showing next year. effect for sales.
On Tuesday, Businesshala reported that Apple could cut production of its iPhone 13 by up to 10 million units and 80 million units of the new iPhone model by the end of this year due to chip shortages.
Apple previously told investors that chip shortages would affect its iPhone products, but declined to comment on Tuesday.
However, several Wall Street analysts did not change their iPhone sales estimates following the news.
“The report does not prompt me to revisit my estimate on iPhone units sold,” said Tom Forte, analyst at DA Davidson & Co.
According to Refinitiv IBES, analysts are expecting approximately 45 million units for the fourth quarter and 79.4 million units in the major holiday quarter.
“Apple enjoys market-leading customer retention/loyalty
As such any delay in production pushes iPhone sales into future quarters,” Morgan Stanley analysts wrote in a note.
Apple also has sway over its component vendors given its enormous buying power, and that means that while it can’t buy as many parts as it wants, it will likely get more than its rivals.
Angelo Zino, an analyst at the research firm CFRA, said, “While we believe that Apple receives preferential treatment from the supply chain and is best-positioned among hardware providers, it will still be out of business during the holiday sales season.” There is no immunity from the extreme conditions felt before.”
For much of last year, Apple had avoided shortages by prioritizing its cash cow — the iPhone — over the popular product’s components.
However, global chip shortages have hit Apple’s ability to sell Macs and iPads. In July, the company warned that it would begin affecting iPhone production and predicted revenue growth to slow.
The company’s shares have fallen about 3% since its warning in July and were down about 1% on Wednesday.
Jeff Fieldhack, research director at Counterpoint Research, said the reported Apple production cuts may be part of the iPhone maker’s normal launch process, which may be part of the over-ordering process of devices geared toward the early customer crowd. and then trim the order once sales trends become clear.
FieldHack said iPhone 13 sales appear to be healthier and higher than last year’s iPhone 12.