Gene Munster, an Apple analyst and managing partner at Loup Ventures, said “one-third of the issue” comes from Apple’s decision to hike the price of its entire iPhone lineup, with multiple models in excess of the once unfathomable $1,000 price tag. This move “dampens” the number of people looking to upgrade to new iPhones, he said.

In his letter, Cook did not mention price hikes specifically, but he did admit that there are other factors hurting iPhone sales outside China, including fewer carrier subsidies and the company’s decision to offer cheaper battery replacement last year.

To make matters worse, analysts with Goldman Sachs wrote in an investor note Wednesday that Apple is “more sensitive” to negative macroeconomic trends today than it might have been a few years ago because it’s “approaching maximum market penetration for the iPhone.” The analysts predicted “further downside” to Apple’s sales figures in the fiscal year ahead.