Quantum approximate optimization algorithm (QAOA) is a promising quantum-classical hybrid technique to solve NP-hard problems in near-term gate-based noisy quantum devices. In QAOA, the gate parameters of a parameterized quantum circuit (PQC) are varied by a classical optimizer to generate a quantum state with a significant support to the optimal solution. The existing analysis fails to consider nonidealities in the qubit quality i.e., short lifetime and imperfect gate operations in a realistic quantum hardware. In this article, we study the impact of various noise sources on the performance of QAOA both in simulation and on a real quantum computer from IBM. Our analysis indicates that QAOA performance is noise-sensitive (especially higher-depth QAOA instances). Therefore, the optimal number of stages (p-value) for any QAOA instance is limited by the noise in the target hardware as opposed to the current perception that QAOA will provide monotonically better performance with higher-depth. We show that the two-qubit gate error has to be decreased by more than 75% of the current state-of-the-art levels to attain a performance within 10% of the maximum value for the lowest-depth QAOA.