Apple warns of hit to iPhone shipments from China COVID disruption
$Apple (AAPL.US)$ 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 $Canada Goose Holdings Inc (GOOS.CA)$ 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.
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 $Canada Goose Holdings Inc (GOOS.CA)$ 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.
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