(Reuters] – J.P.Morgan became the second brokerage within two weeks to lower its estimate for Apple Inc’s (NASDAQ:) iPhone sales in the critical holiday quarter. This is due to the fact that the Asia chip shortage and the closure of Asian factory plants has finally caught up to the technology company.

Analyst Samik Chatterjee stated in a note that the brokerage reduced its iPhone revenue estimates to $63 billion in the first quarter fiscal 2022. This would represent a nearly 4% annual drop, and he also said this to clients.

Needham stated last week that iPhone 13 sales were expected to exceed 80 million units for the quarter. However, it reduced its estimate of holiday quarter shipments by 10,000,000 units. This was due to supply chain concerns including the lack of iPhones.

JPM anticipates that iPhones will bring in $46 billion revenue for the fourth quarter after they have sold 58 million units. This is slightly higher than Wall Street’s $41 billion forecast.

Analysts are expecting approximately 45 million units to be sold in the holiday quarter, and 79.5 million units during the first quarter according to Refinitiv IBES.

Apple is able to weather the supply crunch more successfully than most companies because of its large purchasing power and long-term supply arrangements with chip vendors. But supply chain bottlenecks, lockdowns in Vietnam (second half) and other factors are slowing down Apple’s production schedules.

Bloomberg News reports that Apple, a Cupertino company, is expected to cut production by 10 million iPhone 13 units as a result of the shortage of global chips.

Analysts said that customers who want an iPhone 13 have already been tested for patience with the longest waiting times in recent history.

Chatterjee explained that there is still strong demand to buy iPhone 13 and 5G iPhone SE, despite low expectations from investors to be a catalyst. However, realization has been delayed by supply headwinds.

Apple announced Monday however that the two new MacBook Pro models will ship next week with new AirPods 3 and more powerful internal chips.

Wedbush analyst Daniel Ives noted that Apple’s holiday season announcements of new hardware products despite shortages showed that the company is flexing its supply chains muscles.