Shares of Apple plunged on a warning of slower sales in the coming months.

Apple spooked Wall Street on Thursday by warning it expected a "significant" hit from growing supply constraints for its most popular products. Shares in the company fell in after-hours trading by more than 7%, even as it showed a 16% increase in revenue to $109b (£81b) thanks in part to unexpectedly high iPhone sales, and a 26% increase in profits to $29b. Outgoing chief executive Tim Cook said while the impact of supply constraints had already shown up with the availability of Mac computers, it was expected to worsen and spread to affect iPhone and iPad products. "We're seeing some very significant constraints currently with limited flexibility in the supply chain to remedy it," Cook said. One of the supply constraints was in key chip components of Apple's products, the firm said. Devices such as Macs and iPhones require microprocessors with "advanced nodes" - essentially computer chip technology that allows them to operate more quickly - most of which Apple has manufactured through TSMC, which is based in Taiwan. However, Cook insisted that the core issue was unexpected demand, mainly for iPhone and Mac products. Sales of those products grew 22% and 25% respectively during the June quarter. Earlier this year, Apple said its iPhone 17 was so in demand that its launch was the biggest in the company's history.