Worries about the Chinese economy weighed on the overall market, but they were of particular concern to consumer electronics giant Apple (AAPL -2.63%) as it deals with potential problems that could disrupt supplies and hurt near-term financial results. However, the news was better for advertising-tech specialist Taboola (TBLA 43.48%), whose stock soared after making a deal with a well-known company with extensive digital property exposure.

Shares of Apple dropped about 2% early Monday, extending losses from Friday. The tech giant has been a focal point of problems in China linked to the zero-COVID policy there.

Apple and its Foxconn production partner have faced challenges at a key production facility in Zhengzhou, where COVID-related restrictions have led to protests among Chinese workers. In response, Foxconn has offered extensive bonuses in order to get the workers it needs to keep the facility running at reasonable capacity. Zhengzhou is the largest iPhone factory in the world, and Apple has relied on the facility for supplies of its newest iPhone 14 Pro and Pro Max lines of smartphones.

Even with those measures, though, Apple is likely to see production of iPhone Pro smartphones fall short of expectations by 6 million units, according to reports citing those familiar with operations. Moreover, if lockdowns continue in the area, there's the potential for even further shortfalls in iPhone production.