Chavi Mehta & Subrat Patnaik

(Reuters] – Apple could face a global shortage of chips in the coming months. However, Apple (NASDAQ) analysts are confident that they can weather this storm by reselling more iPhones next year.

Bloomberg reports that Apple could reduce its iPhone 13 production by up to 10 million units. It will also produce 80,000,000 units of new iPhone models this year due to the shortage of chip technology.

Apple told its investors previously that the chips shortage would impact iPhones, but they declined to comment Tuesday.

However, several Wall Street analysts did not alter their estimates of iPhone sales following the news.

“The report doesn’t inspire me to reconsider my estimate of iPhone units sold,” D.A. Davidson & Co analyst Tom Forte said.

Analysts are expecting approximately 45 million units to be sold in the fourth quarter, and about 79.4 millions units during the holiday quarter according to Refinitiv IBES.

“Apple enjoys market-leading customer retention/loyalty

So that iPhone sales will continue to rise in future quarters despite any delays in production Morgan Stanley Note from analysts at the (NYSE:)

Apple is also in a position to influence component suppliers, due its immense buying power. That means, while Apple might not be able buy all the parts it needs, it can likely purchase more than its counterparts.

Angelo Zino from research company CFRA said that Apple receives preferential treatment in the supply chain, and it’s best placed among hardware suppliers. However, Apple is not immune to extreme conditions before the holiday sales season.

Apple had protected its cash cow, the iPhone, from shortages for most of the past year by prioritizing parts to the product.

Apple is now unable to sell iPads or Macs because of a worldwide chip shortage. Apple warned it in July about how the global chip shortage could affect iPhone production. It also forecasted slowing revenue growth.

The company’s shares have dropped about 33% in the past month, and they were at 1% Wednesday.

Counterpoint Research research director Jeff Fieldhack suggested that the Apple production reduction could have been part of Apple’s regular launch of over-ordering to prepare for a customer rush, and then trimming orders when sales trends are clearer.

Fieldhack said that iPhone 13 sales seem to have been healthy and better than iPhone 12 in 2013.