Apple’s holiday quarter may face pressure from inflation, weak China demand

Apple Inc’s earnings report on Thursday may show the best quarterly sales growth for iPhones this year but it could still foreshadow a difficult holiday period as China demand slows and inflation hits multi-decade highs.

Analysts expect iPhone sales to rise 11% in the fiscal fourth quarter ended September, according to Refinitiv, thanks to consumers upgrading to the company’s premium-priced Pro phones. However, growth is estimated to slow to just 2% in the crucial holiday quarter.