Apple gave a sales forecast for the holiday quarter that missed Wall Street expectations, hurt by weak demand for iPads and wearables. The company’s shares fell about 3% in after-hours trading. Chief Executive Tim Cook insisted that the company’s new iPhone 15 models were doing well in China, seeking to ease worries that Apple was losing market share to resurgent Huawei and other local smartphone sellers. But the iPhone maker’s guidance for the quarter, which was below analysts’ estimates, signaled that the company may be unable to maintain current sales momentum in the crucial Chinese market.

Apple CEO Tim Cook on Thursday toured China, where the iPhone 15 has received a mixed reception amid growing tensions between the US and China over trade and as a resurgent Huawei seeks to claw back market share in the world’s biggest mobile phone market. But he also acknowledged that China’s economy is slowing and warned that trade issues could hit growth in the country, the world’s second-largest market.

The China visit comes a month after the iPhone 15 went on sale in that vital market to a lukewarm response. Counterpoint Research said earlier this week that iPhone 15 series unit sales in China are off to a slow start and are expected to be down 4.5% year-over-year.

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And while Cook remained confident about the iPhone’s prospects in China, he offered little hope that the iPhone’s other hardware business units will bounce back soon. “We’re seeing the same trends in our other businesses, which are still declining, primarily due to the economic slowdown in emerging markets and tariff issues in China,” Cook told investors on a conference call.

During the call, the CEO was asked several times about the impact of the ongoing dispute between the two nations on the Chinese economy and whether it would affect Apple’s sales there. The company’s revenue from its other hardware units, including the iPad and Mac, declined in the quarter, while iPhone sales reached a record high.

But Cook emphasized that the company’s overall performance was solid, and it had already surpassed its goal of shipping 100 million units of its new iPhone XR for a quarter. He also predicted that the company’s supply issues with its top-tier iPhone Pro and Pro Max models would be resolved by the end of this fiscal first quarter and said he was optimistic about the outlook for the rest of 2023.

However, Wedbush Securities analysts Daniel Ives and John Katsingris lowered their price target on the stock to $175 from $200 and lowered their estimates for 2023 to $199 from $206. They note that recent channel checks suggest that pent-up demand for premium iPhones is slowing and that Apple’s effort to outperform last year’s $75 billion in holiday quarter sales will take a lot of work to meet. The firm’s rating on the stock remains “outperform.”