Apple warns of hit to iPhone shipments from China COVID disruption

Apple Inc (AAPL.O) expects lower shipments of high-end iPhone 14 models than previously anticipated following a significant production cut at a virus-blighted plant in China, dampening its sales outlook for the year-end holiday season, Qazet.az reports.

Solid demand for the new iPhones has helped Apple remain a rare bright spot in the global tech sector that has been battered by spending cutbacks due to surging inflation and interest rates.

But the Cupertino, California-based company has now fallen victim to China's rigorous zero-COVID-19 policy, which has already prompted many global firmsincluding Estee Lauder Companies Inc (EL.N) and Canada Goose Holdings Inc (GOOS.TO), to shut their stores in China and cut full-year forecasts.

"The facility is currently operating at significantly reduced capacity," Apple said in a statement on Sunday without elaborating how much production has been impacted.

"We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated," it said.