IPhone demand weakens amid peak holiday shopping season

Lower demand for iPhones, continued delivery delays, and high inflation could make last year’s successful holiday season difficult for Apple (AAPL) leading this year.

Apple’s latest iPhone model – the iPhone 13 – rolled out this quarter to meet weaker-than-expected demand, according to reports.

Bloomberg News reported that Apple has already reduced its iPhone 13 production target for this year by 10 million units, down from a target of 90 million, due to a lack of parts. The company has warned suppliers that orders may not materialize.

CNBC reported Thursday that while Apple shares have weathered market volatility fueled by Omicron this week, the company acknowledging weak demand for iPhone as well as lingering supply chain issues rocked investors .

Apple shares closed Thursday at $ 163.76, down $ 1.01, or 0.61%.

But analysts and Apple CEO Tim Cook still expect Apple to report record revenue for the quarter based on the performance of the holiday season last year, when the company reported. for the first time over $ 100 billion in revenue.

Analysts are forecasting a 6% increase in sales to $ 117.9 billion in the fiscal fourth quarter.

In addition to the iPhone 13, Apple also introduced a new version of AirPods and a redesigned MacBook Pro for this holiday season.

Cook told CNBC he expects revenue growth for the quarter, but predicted supply constraints will cost the company at least $ 6 billion in missed revenue as consumers pull back to try to find the highly sought after iPhone 13 or skip delivery. delays.

Cook said the hope was to make up much of the $ 6 billion shortfall next year when supply bottlenecks could be lifted.

Carol N. Valencia