Report: Apple (APPL) could hit iPhone sales record in Q4
Apple is on pace to sell 80 million iPhones in the fourth quarter despite the global chip shortage, a leading analyst said Tuesday.
And, the company is also on pace to sell a record 40 million phones between Black Friday, the day after Thanksgiving, and Christmas, according to the analyst, Daniel Ives of New York-based Wedbush Securities.
“We estimate that in China alone there are roughly 15 million iPhone 13 upgrades for the December quarter as this key region remains a major source of strength for Apple heading into 2022 and beyond,” wrote Ives in a research report provided to Capital.com.
Chip shortage issue handled
“While the stock has stagnated as the chip shortage has become the Grinch heading into Christmas for Apple with iPhone supply issues, we believe (CEO) Tim Cook (and company) have been able to get more iPhones into the retail channel over the past few weeks, which is a step in the right direction with holiday season around the corner.”
While supply-chain issues have curtailed some growth for Apple, investors are underestimating pent-up demand for the smartphone, Ives said, adding that Wedbush views the chip shortage as “a transitory issue.”
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AirPods 3 also in high demand
Consumers are also displaying strong demand for the company’s bluetooth AirPods 3 earbuds, Ives wrote. Wedbush believes that Apple could sell about 100 million AirPods 3s with a strong holiday performance that is already underway.
AirPods are on a trajectory to represent more than 5% of Apple’s 2022 revenues, Ives noted. The earbuds point to Apple’s ability to “further monetise” through products and services, with 975 million iPhones “worldwide under its belt,” and 1.7 billion active devices in total.
Apple’s stock was up marginally on the Nasdaq Global Select Market Tuesday.