Tech giants that have often sailed above the economy's turmoil can't escape the current downturn's pain, as this week's earnings reports from the sector's key companies illustrated.
Why it matters: Even as other industries struggled during the pandemic, tech prospered because so much of the economy shifted online. Now they are preparing to take a direct hit.
Driving the news:
Apple, meanwhile, fared somewhat better in results posted yesterday.
Yes, but: Even Apple took some hits from the broader economic slowdown, including an impact on revenue from wearables and services.
The big picture: Tech companies are hitting the brakes, especially when it comes to hiring. Just a few months ago their biggest challenge was finding enough qualified people to fill open jobs.
Between the lines: Companies are facing a long list of challenges, from lingering supply chain bottlenecks to inflation to foreign exchange costs.
Be smart: Just planning for a possible economic slowdown can make the slowdown happen.
Our thought bubble: No one is happy in this kind of business climate, but the markets appear to be relieved that most of the tech giants avoided big negative surprises.
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