Apple on Thursday reported strong quarterly results despite supply shortages, but warned that its growth slowdown is likely to deepen. The company said it’s still struggling to get enough chips to meet demand and contending with COVID-related shutdowns at factories in China that make iPhones and other products. Although initial results for the January-March period topped analysts’ projections, the good news was quickly eclipsed when management warned of trouble ahead during a conference call.

The main takeaway: Apple’s sales will be squeezed by the supply problems much harder in the current April-June quarter than in its previous one. The company estimated it would take a hit to revenue of $4 billion to $8 billion as a result. “It will affect most of the product categories,” Apple CEO Tim Cook told analysts.

Apple’s stock price fell 4% in extended trading, reversing a positive response after the Apple report initially came out.