Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

iPhone Production Cuts May Weigh On Apple’s Key Holiday Quarter

Published 10/13/2021, 07:18 PM
Updated 10/13/2021, 07:18 PM
© Reuters.

© Reuters.

(Bloomberg) -- A possible reduction in iPhone 13 production targets for 2021 could hurt Apple Inc (NASDAQ:AAPL).’s revenue for the key holiday quarter, analysts say.

The likely cut to output goals, reported by Bloomberg just as U.S. markets closed Tuesday, may cause sales to miss projections in the October-December period, Bank of America Corp. analyst Wamsi Mohan said in a note.

While BofA expects the technology giant’s September quarter sales to beat estimates, “constraints could more meaningfully impact the December quarter, where we expect Apple to come in below consensus,” said Mohan, who has a neutral rating on the stock.

Apple fell 0.6% in premarket trading, pushing the stock into correction territory, having fallen more than 10% from a September record. The company is the latest to face a setback from semiconductor supply constraints, which has been affecting industries from cars to phones. However, analysts at many Wall Street banks remain bullish on Apple, saying iPhone demand remains robust.

Apple’s potential production cuts also dented stock prices of suppliers such as Skyworks Solutions (NASDAQ:SWKS) Inc., STMicroelectronics NV and Japan Display Inc. The ripple effects extended from Asia to Europe to North America.

“If Apple can’t meet near-term demand, the shortfall is likely to be even greater at competitors,” said Morgan Stanley’s Katy Huberty, adding that the most significant bottleneck is probably in camera modules for iPhone 13 Pro and iPhone 13 Pro Max.

©2021 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.