Apple's iPhone shipments from China to drop in December quarter

Apple Inc expects a lower number of shipments of high-end iPhone 14 models. The decrease in the number of shipments was noted after a significant production cut at a plant in China that happened due to the anti-covid measures in China. Because of these measures, there is a deterioration in sales forecast for the holiday season expected at the end of the year.

Strong demand for new iPhone models has helped Apple remain a vibrant company in the global tech sector, Reuters reports. While the tech sector has been hit by cost cuts due to rising inflation and interest rates, Apple Inc has been able to capture and keep consumer attention on its product.

Now, the Cupertino, California-based company is the victim of China's rigorous zero-COVID-19 policy. Due to the introduction of strict anti-epidemic measures in China, many global firms, including Ester Lauder Companies Inc, and Canada Goose Holdings Inc, are forced to close their stores in China and cut full-year forecasts.

From the statement made by the company, it appears that the plant is currently running, but its performance has been degraded. The extent to which the decrease in the productivity of the plant affected production, however, was not noted in the statement.

The statement also refers to continued high demand for the iPhone 14 Pro and iPhone 14 Pro Max models. However, the supply of these models of the Apple line is expected to decrease.

In October, Apple with $2.2 trillion in assets, forecasted that its revenue would fall below 8% in the December quarter.