Chip shortages won’t stop Apple from breaking its own revenue records, analyst says

Chip shortages won’t stop Apple from breaking its own revenue records, analyst says

Apple seems to have had a very strong quarter in the last quarter of 2021 in terms of sales, despite the difficulties coming from supply chain delays and the chip shortage that has been affecting the entire tech industry. AppleInsider now reports that investment bank JP Morgan expects Apple to beat Wall Street’s consensus predictions with its revenue, therefore breaking its holiday quarter records.

Apple expected to break its holiday quarter records despite chip shortages

It seems like Apple can sell no matter what is going on in the tech industry… not only sell but even break its own records in a time where a global chip shortage is stopping many manufacturers from delivering their best results. Well, that is, at least, according to a note to investors from JP Morgan, which was seen by AppleInsider. In the note, JP Morgan lead analyst Samik Chatterjee shared his predictions for Apple’s first quarter of 2022, which actually corresponds to the fourth calendar quarter of 2021. And as all of you know: that’s the holiday season times. Apple has not given any guidance on the quarter and what to expect. Despite that, Chatterjee predicts Apple will beat Wall Street’s expectations for the quarter, and at the same time, smash its own records in the process. This pretty much means the analyst expects Apple’s holiday season revenue to beat any revenue for the quarter the company ever had!

Now, let’s talk specifics. According to the analysts’ prediction, Cupertino’s reported revenue will be $119 billion, which will beat last year’s $111.4 billion for the same quarter. So far, Wall Street is expected around $118 billion of revenue to be reported by the company.

Since the company’s last earnings report, its shares have risen by 15%. It also outperformed the S&P (which is an important benchmark pretty much showing the top 500 companies in the United States) – which was up by only 3% for the same period. Additionally, Chatterjee expects iPhone 13 earnings to be better than expected for the stock performance. On the other hand, he has reduced the iPad revenue predictions for Q1 2022. Despite that, he says Apple will still have strong Products revenue. On top of all that, he shared his iPhone shipment estimation which is around 83 million units, which is slightly above the consensus of 82 million.

Will the chip shortage affect Apple’s revenue at all, in this case?

In his predictions, Chatterjee still takes into account the supply chain difficulties and says they will still limit the size of Apple’s revenue. Despite that, though, he still thinks Apple will beat Wall Street’s expectations for the quarter.

According to the analyst’s prediction, the biggest upgrade to the earning cycle will be March’s quarterly revenue and earnings-per-share (EPS) expectations. He expects a bigger iPhone revenue that is typical for the season: pretty much because Apple will be able to achieve inventory balance later than in previous years, while the supply chain conditions improve.

Given all this, the analyst is expecting a total 2022 Apple revenue of $382 billion and earnings-per-share of $5.95. There’s no doubt the company can afford to award Tim Cook and other executives as much as was revealed recently.

The analyst additionally notes that Apple’s shares will go higher in consequence of the high revenue. He still maintains his 12-month Apple share price target of $210.

iPhone 13 phones are still selling like crazy around the world, especially in China

Recently, we reported on the fact that interest for the iPhone 13 series (except the mini) has been quite high in China. There, according to Counterpoint Research, Apple was able to beat Oppo and Vivo by sales with quite a good margin in the world’s single largest smartphone market.



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