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).

By Reuters | Updated: 19 October 2021 17:58 IST

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.

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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.

iPhone 13 and iPhone 13 mini First Impressions

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.

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iPhone 13

REVIEW
KEY SPECS
NEWS

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

Read detailed Apple iPhone 13 review

Display 6.10-inch

Processor Apple A15 Bionic

Front Camera 12-megapixel

Rear Camera 12-megapixel + 12-megapixel

Storage 128GB, 256GB, 512GB

OS iOS 15

Resolution 1170x2532 pixels

More Apple mobiles Apple mobiles price in India

iPhone 13 mini

REVIEW
KEY SPECS
NEWS

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

Read detailed Apple iPhone 13 mini review

Display 5.40-inch

Processor Apple A15 Bionic

Front Camera 12-megapixel

Rear Camera 12-megapixel + 12-megapixel

Storage 128GB, 256GB, 512GB

OS iOS 15

Resolution 1080x2340 pixels

More Apple mobiles Apple mobiles price in India

iPhone 13 Pro Max

REVIEW
KEY SPECS
NEWS

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

Read detailed Apple iPhone 13 Pro Max review

Display 6.70-inch

Processor Apple A15 Bionic

Front Camera 12-megapixel

Rear Camera 12-megapixel + 12-megapixel + 12-megapixel

Storage 128GB, 256GB, 512GB, 1TB

OS iOS 15

Resolution 1284x2778 pixels

More Apple mobiles Apple mobiles price in India

iPhone 13 Pro

REVIEW
KEY SPECS
NEWS

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

Read detailed Apple iPhone 13 Pro review

Display 6.10-inch

Processor Apple A15 Bionic

Front Camera 12-megapixel

Rear Camera 12-megapixel + 12-megapixel + 12-megapixel

Storage 128GB, 256GB, 512GB, 1TB

Battery Capacity 3095mAh

OS iOS 15

Resolution 1170x2523 pixels

More Apple mobiles Apple mobiles price in India

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