On Tuesday, Apple executives announced that the impact of the chip shortage, which was less severe than expected in the just-ended third quarter, will only get worse in the current fourth quarter extending to iPhone production.

Prior to the announcement, Apple reported third-quarter sales and profits that exceeded analyst forecasts thanks to sales of premium versions of its 5G iPhones and subscription services.

Total revenue was $81.43 billion, $1.30 per share, beating analyst forecasts of $73.30 billion, $1.01 per share.

In post-market trading, Apple shares fell 1.7% to $144.24 after the announcement.

CEO Tim Cook said the chips affected by the shortages are made with older technology but would still be needed as support parts for making iPhones.

The company told investors last quarter that the chip shortage could slow sales by $3 billion to $4 billion.

For more information, read the original story in Reuters.