Apple warns of hit to iPhone shipments from China COVID disruption

Apple Inc 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.

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 firms including Ester Lauder Companies Inc and Canada Goose Holdings Inc to shut their stores in China and cut full-year forecasts.