Apple's Earnings Growth Slows as Supply Chain Constraints Bite

Apple's latest earnings report showed solid results, but guidance for the next quarter fell short of expectations. The tech giant reported revenue growth of around 9-11%, beating estimates of 12.1% year-over-year.

iPhone sales drove much of Apple's revenue growth, with a 22% increase in sales and record-high upgrade rates. Mac sales also exceeded expectations, growing 29% year-over-year. However, services revenue grew at a slower pace than expected, just 12% year-over-year.

The company's guidance for the next quarter was less optimistic, citing supply chain constraints and rising memory prices as headwinds. Apple expects gross margins to decline by around 160 basis points compared to the previous quarter, impacting its bottom line.