JPMorgan cut its forecast for Apple Inc's projected sales of the iPhone during the holiday quarter following a series of factory closures in Asia and a global chip shortage, according to a new report released Tuesday.
The investment banking company initially estimated iPhone sales would bring in close to $63 billion in revenue during the first fiscal quarter of 2022, according to analysis. These numbers would signal a 4% yearly fall, JPMorgan analyst Samik Chatterjee said.
Still, analysts at Needham announced last week they expect shipments for the iPhone 13 to total roughly 80 million units, cutting it by 10 million units due to supply chain chaos and the chip shortage, Reuters reported.
JPMorgan stated it anticipates iPhones to accumulate $46 billion for the fourth quarter after the sale of 58 million units.
Holiday quarter projections for iPhone sales register at around 45 million units and 79.4 million total units for the first quarter, according to analysts at Refinitiv IBES.
Apple's purchasing power and supply agreements with chip suppliers have allowed the company to endure the supply crunch better than others, according to the Reuters report. Still, lockdowns in Asian nations and bottlenecks in supply chains have impeded production.
"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 realization of which, although delayed on account of supply headwinds, is unchanged in magnitude," Chatterjee said.
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Original Author: Luke Gentile