Apple cuts iPhone 18 Pro orders due to soft demand, Nikkei Asia reports

Apple has reportedly instructed some suppliers to reduce production of components for its freshly released iPhone 18 Pro and iPhone 18 Pro Max due to softer demand and increased costs, according to Nikkei Asia. The company has become more cautious with shipments since early September, with October component orders being cut by at least 15% compared to initial requests, the report stated, citing multiple sources.

Although Reuters could not independently confirm the information, Apple did not respond to a Reuters inquiry for comment outside of regular business hours. As tech companies invest in advanced chip-making facilities and memory chips to support AI data centers, shortages and price hikes have emerged, which could negatively impact both the personal computer and smartphone sectors this year.

Apple raised prices for its iPad and MacBook in June, citing the inability to protect customers from soaring memory and storage chip costs resulting from the AI industry's expansion in data centers. Additionally, the report suggests that demand for Apple devices has been weaker from late August through October, which may be linked to Apple altering its launch schedule for the iPhone models.

The company unveiled the newest version of its flagship smartphone, the iPhone 18 Pro and Pro Max, along with its foldable phone Duo, in the previous month. These models commence at $1,199 and $1,299, respectively, representing a $100 increase in starting prices compared to the iPhone 17 Pro and Pro Max. As Apple integrates more AI capabilities into its devices, the demand for high-performance memory has risen, emphasizing the critical role of suppliers amid a global chip shortage.