Apple cuts iPhone 18 Pro orders on weak demand, Nikkei says

Apple ↗ 1.29% has told some suppliers to cut production of components for the iPhone 18 Pro and iPhone 18 Pro Max, Nikkei Asia reported on Friday. Rising memory chip costs pushed Apple to raise prices on both phones, and those increases appear to have hurt demand. Citing several people familiar with the matter, Nikkei said Apple's October component orders are at least 15% below what the company first requested. Apple has also been more cautious about shipments since early September.reuters+1

The report suggests Apple's most expensive phones are having trouble finding buyers at their new prices. Apple shares fell about 1.6% in early premarket trading on Friday, and Barron's put the drop at roughly 2% before the open. The shares had closed Thursday just below their record closing high, set on Sept. 25.barrons+2

Orders down as much as 20%

"In October alone, we are seeing orders from Apple reducing by 15% to 20% for both the premium models; we don't know how things would develop from here," an executive-level source told Nikkei Asia. The cuts will reduce some suppliers' production in October, depending on their lead times. Nikkei said it is not yet clear whether Apple will make further cuts from November.economictimes

Reuters said it could not immediately verify the report, and Apple did not immediately respond to a request for comment.newsbreak

The iPhone 18 Pro starts at $1,199 and the Pro Max at $1,299, each $100 more than the iPhone 17 Pro models they replace. Both went on sale Sept. 18. UBS ↘ 0.64% analysts said average waiting times for iPhone 18 Pro deliveries had fallen in more than 30 markets. In a note cited by Nikkei, they called the trend "an increasing concern," given that recent price increases "raised the risk of demand elasticity".economictimes

A staggered launch and memory costs

Some of the weakness may come from a change to Apple's launch schedule. The standard iPhone 18 and the next iPhone Air are expected in spring 2027, not alongside the Pro models. "This year, the standard iPhone 18, which could provide a boost to volumes, will not require components until toward the end of the year," a supply chain manager told Nikkei. Because the new models cost at least 10% more than the ones they replace, lower production may not immediately mean lower revenue, Nikkei reported.economictimes

Prices are also rising because AI companies are buying up memory chips for data centers. Apple raised iPad and MacBook prices in June, saying it could no longer shield customers from higher memory and storage costs. Research firm IDC expects global smartphone shipments to fall 16.7% in 2026.newsbreak+1

The report also raises questions about the iPhone Duo, Apple's first foldable phone. It starts at $1,999 and goes on sale Oct. 23. "It's just too expensive for a smartphone," a person with direct knowledge of the situation told Nikkei Asia.forbes+1