Apple shares were down nearly 3% Thursday following a Bloomberg report that said the company warned its suppliers demand is lower than expected for new iPhones this holiday season.

Apple’s stock resisted the omicron-fueled volatility in the market this week, but word of weak demand on top of the known supply chain issues rattled investors Thursday morning. An Apple spokesperson did not comment on Bloomberg’s report.

The current quarter marks the first full quarter Apple’s new iPhone model, the iPhone 13, will be available. Apple also introduced other new products ahead of the holiday shopping season, including a new version of AirPods and a redesigned MacBook Pro. But the iPhone remains Apple’s most profitable product, so any signs of weakening demand going into the holidays are sure to send the company’s shares lower.

Still, analysts expect Apple to report growing revenues for the quarter after it booked more than $100 billion in revenue for the first time in the holiday 2020 quarter. CEO Tim Cook told CNBC this fall that he expects revenue growth for the quarter, but predicted supply constraints will cost the company at least $6 billion in missed revenue.