$Apple(AAPL)$faces increasing costs from global logistics and rising employee salaries, as well the possibility that consumers will put off their iPhone upgrades due to their declining purchasing power.

Apple may eat some of the higher costs, taking ahit on its margins, while keeping prices stable to avoid denting demand.

Apple has not yet signaled weakness. In April, it said demand remained high and suggested that it had not seen signs of deteriorating consumer confidence. The bigger problem was producing enough supply to meet demand for its products.

But the smartphone and laptop markets are showing some signs of slowing. The high-end part of the smartphone market, where Apple sells, is holding up better than the bargain bin, although overall phone sales have started to slide.

The company may also be facing increased labour costs in response to markets conditions after rivals made changes to their compensation earlier this year in a bid to attract and retain top tech talent.

As always, please DYODD ✌️