Apple shares fell nearly 10% after CEO Tim Cook warned that rising memory costs and supply constraints could pressure the company’s business.

Although Apple’s third-quarter earnings and revenue exceeded analyst expectations, the company said higher component costs are making it harder to maintain margins.

The memory shortage has already led Apple to raise prices on some Macs and iPads, with potential iPhone price increases expected later this year.

Analysts warned that higher iPhone prices could slow sales growth and impact Apple’s services business, Yahoo Finance has reported.

The challenges will be inherited by incoming CEO John Ternus, who will take over leadership from Tim Cook in September.