Apple cuts iPhone 18 Pro orders due to soft demand: Report

Apple has reportedly instructed some suppliers to reduce production of components for its recently released iPhone 18 Pro and iPhone 18 Pro Max due to weak demand, Nikkei Asia reported on Friday. The company has become more cautious with shipments since early September, with orders for October being reduced by at least 15% compared to initial requests, according to multiple sources familiar with the matter, as cited by Nikkei.

However, Reuters could not independently confirm the report. Apple did not immediately comment on the Reuters request for information.

The tech industry has been focused on acquiring advanced chip-making capacity and memory chips to fuel AI data centers, leading to shortages and price increases that are projected to impact both the personal computer and smartphone markets in 2023. Apple raised prices for its iPad and MacBook in June, citing the inability to shield customers from escalating memory and storage chip costs fueled by the rapid expansion of the AI industry's data center buildout.

The demand for Apple devices has been softer from late August to October, though this could also be attributed to Apple altering its launch schedule for the iPhone models, as per Nikkei's report. In September, Apple unveiled the latest generation of its flagship smartphone, including the iPhone 18 Pro and Pro Max models, along with its foldable phone Duo.

The starting prices for the iPhone 18 Pro and Pro Max are $1,199 and $1,299, respectively, which represent a $100 increase from the starting prices of the iPhone 17 Pro and Pro Max. As Apple incorporates more AI features into its devices, its reliance on high-performance memory has grown, highlighting the crucial role of suppliers amid a global memory shortage.