China Covid Outbreak To Limit Apple iPhone 14 Pro Availability The consumer electronics giant late Sunday said an iPhone assembly factory in Zhengzhou, China, is "operating at significantly reduced capacity" because of Covid restrictions. The Foxconn-owned factory is the company's primary assembly plant for the iPhone 14 Pro and Pro Max, it said. "We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models," Apple said in a news release. "However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products." The news is "an absolute gut punch for Apple in its most important holiday quarter," Wedbush Securities analyst Daniel Ives said in a note to clients. He estimated that the reduced production could cut Apple's iPhone sales by 3% this quarter. Apple Stock Wavers On Warning "If Zhengzhou remains at lower capacity the next few weeks, this would cause clear iPhone Pro shortages into the all-important Christmas time period, especially in the U.S.," Ives said. On the positive note, the lower-than-expected iPhone sales will be the result of a supply shortage and not demand related, he said. Ives reiterated his outperform rating on Apple stock with a price target of 200. On the stock market today, Apple stock initially fell on the news but ended the regular session up 0.4% to 138.92.