Apple, suppliers slip as tech giant in 'cross-fire' of China's zero COVID policy: Wedbush
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Apple (NASDAQ:AAPL) shares slipped nearly 2% in premarket trading on Monday after a weekend of protests in China, caused by the country's draconian zero COVID-19 policy, may have impacted the tech giant's iPhone production even greater than estimated, investment firm Wedbush Securities said.
Analyst Dan Ives, who has an outperform rating and $200 price target on Apple (AAPL), said the tech giant likely could see an iPhone shortfall of 5% and perhaps as much as 10% depending on how the next few weeks go in China with regards to production at the Foxconn plant in Zhengzhou and protests around the country. 
The analyst added that many Apple (AAPL) stores have seen "major" iPhone 14 Pro shortages by as much as 40% compared to typical inventory levels and delivery dates have been pushed into early January in some cases.
"The zero China Covid policy has been an absolute gut punch to Apple's supply chain with the Foxconn protests in Zhengzhou a black eye for both Apple and Foxconn," Ives wrote in the note. 
Ives added that the tech giant is "extremely limited" in its options for the holiday season and is essentially at the mercy of the country's health policies as it relates to the pandemic, a situation that is likely "very frustrating" for both Apple (AAPL) and investors alike. 
Apple (AAPL) suppliers such as Qualcomm (NASDAQ:QCOM) and Taiwan Semiconductor (NYSE:TSM) were lower in premarket trading, while Skyworks Solutions (NASDAQ:SWKS) and Qorvo (QRVO) were little changed.
On Monday, it was reported that Apple (AAPL) could see a production shortfall of as many as 6M iPhone 14 Pro units due to unrest at Foxconn's Zhengzhou manufacturing plant.