Apple Warns of Deceleration Due to Supply Constraints and Rising Memory Costs

Apple's second-quarter results exceeded Wall Street's expectations, with revenue up 16.4% year-over-year to $109.4 billion and non-GAAP profit of $2.02 per share beating analysts' consensus estimates by 7%. However, the market responded negatively as management highlighted intensifying supply constraints and rising component costs.

Ceo Tim Cook noted that robust demand for the latest iPhone and Mac lineups fueled growth, but constrained supply of advanced semiconductor nodes limited flexibility. Cook explained, 'The constraints were primarily driven by the availability of the advanced nodes that our SoCs are produced on.'

Management also pointed to higher memory costs as a key factor impacting margins and pricing decisions this quarter.