Qualcomm has warned of weaker profits as a result of major headwinds in the broader smartphone industry.

According to TheStreet, Qualcomm is warning that a slump in smartphone demand, along with COVID lockdowns in China, is impacting its profits. As a result, the company will not deliver the profits analysts were expecting, instead coming in somewhere between $9.2 and $10 billion.

“What we have seen in the smartphone markets is a combination of the weakness of demand, which is related to basically the macroeconomic headwinds, and the prolonged Covid in China,” CEO Cristiano Amon said in a late-Wednesday investor call.

Interestingly, Amon said the previous supply chain issues were finally resolved, but “with the macroeconomic uncertainty, you have a drawdown to bring inventory to a different level than it was during the situation of demand constraint. That’s the big issue, really.”