Discussions
No discussions yet
Be the first to start a discussion.
October orders are down at least 15 percent from Apple's original asks, suppliers say, as $100 price hikes and the delayed standard iPhone cool volume.
Apple has told some suppliers to cut production of components for iPhone 18 Pro and iPhone 18 Pro Max after demand came in softer than expected, Nikkei Asia reported on Friday, citing people familiar with the matter. Higher memory-chip costs and the resulting price increases are the main factors suppliers point to.
Reuters, citing the same Nikkei report, said it could not immediately verify the claims. Apple did not immediately respond to a request for comment outside regular business hours.
The cuts will hit October production volumes for some suppliers depending on lead times. Nikkei notes that lower unit volume may not immediately dent Apple's revenue, because the new models are roughly 10 percent more expensive than their predecessors.
Suppliers blame the cooler uptake on sticker shock after memory and storage costs soared amid AI data-center demand. Apple raised iPad and MacBook prices in June for the same reason.
Nikkei also ties softer second-half volume to Apple's launch schedule. This cycle prioritized the Pro models and the foldable iPhone Duo, while the standard iPhone 18 and next-generation iPhone Air are expected in spring 2027. Without the usual volume-driving standard model in the fall, one supply-chain manager told Nikkei that demand from August through the second half "is not as strong as previous years when all the new models are introduced all together."
UBS analysts, also cited by Nikkei, said average wait times for iPhone 18 Pro deliveries have declined across more than 30 markets. Shrinking queues against a stable supply backdrop raise questions about demand elasticity after the price increases.
The same report says the soft Pro demand has raised concerns about Apple's first foldable, iPhone Duo, which starts at $1,999 and is due on sale from October 23 in about 70 countries and regions. One person with direct knowledge of the situation told Nikkei the phone is "just too expensive for a smartphone" and that, given Pro demand, "we anticipate a similar fate for iPhone Duo soon after it becomes available."
Apple has separately been working with suppliers to improve Duo production yields, Nikkei reported last month, reflecting the complexity of the folding display and Apple's quality bar.
IDC expects global smartphone shipments to fall 16.7 percent in 2026, the industry's steepest year-over-year drop in its figures, while average selling prices rise 27.6 percent as makers pass on higher component costs. Chinese brands including Xiaomi, Oppo, and Vivo have also cut 2026 shipment targets amid the same constraints, according to Nikkei.
That memory crunch has already reshaped channel mix elsewhere: Apple recently took the lead in Europe's carrier smartphone sales as low-end open-market phones absorbed more of the cost shock. Apple's next formal update on iPhone demand comes with fiscal fourth-quarter results on November 2, John Ternus's first earnings call as CEO.