An analyst believes Apple is slashing iPhone 15 production, another indication of weak demand and ongoing supply chain issues.

According to a memo by analyst Jeff Pu, seen by 9to5Mac, Apple expects to ship 77 million iPhone 15 units, down from earlier estimates of 83 million. One of the reported issues was Apple’s “demand concerns.”

In addition, there are also supply chain issues, with Apple reportedly struggling to secure enough of the titanium frames, Sony camera sensors, and the display components.

Apple has recently been touting its services business, and the iPhone 15 news is a good example why the company is eager to diversify beyond hardware sales and cycles.