This year Apple is going through its biggest hardware upgrade cycles with new iPad, iPhone, Apple Watch, iMac, MacBook Pro, AirPods, and HomePod models. The company is expected to generate $120 billion in revenue in the holiday season but the devices shortage could drastically impact the revenue forecast for the December quarter.
Bloomberg reports that this year’s delays are spread more widely with orders of the new iPhone 13, iPad 9, iPad mini, Apple Watch Series 7, MacBook Pro, and MacBook Air models, M1 iMac, and even the new Polishing Cloth accessory will not be delivered until November or December, maybe not in time for Thanksgiving or Christmas.
Delayed delivery dates of Apple devices threaten the company’s expected $120 billion December quarter
As per the report, Cupertino tech giant is expected to generate $120 billion in sales revenue in the December quarter because of its biggest upgrade cycle this year.
The company is expected to generate nearly $120 billion in the final three months of the year, up 7% from a year earlier. That’s more than the combined quarterly sales of Best Buy Co., Costco Wholesale Corp., Walt Disney Co. and Target Corp.
With approaching Thanksgiving holidays the arrival time of the high-end products like new iPhone 13, iPad, MacBook Pro models ordered on Apple’s online store is between November 18-26 and the situation is the same at retail stores as well, “with the majority of outlets seeing little to no supply of most models.”
However, the report reiterates its former claim that Apple has cut iPhone 13 production by 10 million units because of supply constraints, which was rebutted by the company’s suppliers.
On the bright side, relatively less-pricey items like AirPods Pro, HomePod mini, AirTag are easily available. Therefore, Wall Street is confident in Apple’s ability to “mitigate” supply chain problems, and the launch of new products is a green flag.
“Apple’s announcements suggest that it is significantly better at navigating these disruptions,” compared with other manufacturers, Citigroup Inc. analysts Jim Suva and Asiya Merchant said in a report.
Other financial analysts also believe that Cupertino tech company is facing supply constraints but that will not impact its upcoming holiday sales season.
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