Apple’s iPhone holiday revenue might be impacted by supply chain challenges

Apple’s earnings report for Q4, 2021 will be published on October 28, 2021, at 1:30 p.m. Pacific Time and 4:30 p.m Eastern Time which will be followed by a conference call, on the same day, at 2:00 p.m. Pacific Time orĀ  5:00 p.m. Eastern Time.

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Ahead of the earnings report, JP Morgan lead analyst Samik Chatterjee predicts that supply chain constraints might impact the company’s holiday revenue, slightly. Although COVID-19 vaccination drives are bringing life back to normal in many parts of the world, the situation is a little different in developing countries. The recent spike in COVID-19 cases in Vietnam, global chip shortage, and power shortage in China are causing challenges for the supply chain.

Apple expected to report “solid” Q4, 2021 earnings despite supply constraints impacting iPhone holiday revenue

In Chatterjee’s new note to investors, viewed by AppleInsider, he writes that the Cupertino tech giant will report impressive Q4, 2021 earnings driven by strong iPhone 12 demand. But “that beat will be accompanied by guidance for lower than typical seasonality for its Q1 2021, which corresponds to the fourth calendar quarter.” He wrote:

“As we had warned in early October, the primary bottleneck relative to iPhone 13 production worth monitoring was related to the camera module, and checks indicate that while COVID-19 related lockdown in Vietnam has passed the worst point, production continues to face yield challenges in the near term.”

Earlier, Bloomberg reported that the Cupertino tech giant might cut iPhone 13 production by 10 million due to components shortage faced by its suppliers. But that report was immediately refuted by suppliers claiming that there have been no cutbacks in iPhone 13 orders so far this year.

Furthermore, the analyst also expects that supply constraints are not going to affect the demand for Apple’s products.

Instead, he envisions a “modest push-out into the future quarters, setting up catalysts in the form of better than typical seasonality starting in” the second quarter of 2022.

“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.”

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Addicted to social media and in love with iPhone, started blogging as a hobby. And now it's my passion for every day is a new learning experience. Hopefully, manufacturers will continue to use innovative solutions and we will keep on letting you know about them.

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