Analyst: Apple best positioned during global chip crunch, gets preferential treatment from suppliers
Wednesday October 13, 2021. 10:24 PM , from Mac Daily News
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On Tuesday, Bloomberg reported that Apple is likely to slash production of its iPhone 13 by as many as 10 million units and produce 80 million units of the new iPhone models by the end of this year, due to the chip shortage.
Several Wall Street analysts, however, did not change their iPhone sales estimates following the news.
“The report does not inspire me to revisit my estimate on iPhone units sold,” D.A. Davidson & Co analyst Tom Forte said.
According to Refinitiv IBES, analyst are expecting about 45 million units for the fourth quarter and 79.4 million units in the key holiday quarter.
“Apple enjoys market-leading customer retention/loyalty such that any delay in production just 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 while it may not be able to purchase as many parts as it wants, it will likely get more than its rivals.
“While we believe Apple gets preferential treatment from the supply chain and is best positioned among hardware providers, it is nonetheless not immune to the extreme circumstances being felt ahead of the holiday selling season,” said Angelo Zino, an analyst with research firm CFRA.
MacDailyNews Take: People overreact to Apple’s production changes, routine and otherwise. Smart investors welcome the irrational discounts.
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