Topline
Apple’s shares dipped more than 1.6% in premarket trading early on Friday after a report that the company had cut back on the production of components for its new iPhone 18 Pro and iPhone 18 Pro Max due to slower demand for the new phones, which were priced higher than the previous year’s models amid an AI-industry-driven spike in memory chip prices.
The iPhone 18 Pro is reportedly seeing weaker-than-expected demand.
CFOTO/Future Publishing via Getty Images
Key Facts
Citing multiple unnamed sources familiar with the matter, Nikkei Asia reported that Apple has cut component orders for the iPhone 18 Pro models by at least 15% this month due to “weaker-than-expected” demand.
Apple launched the iPhone 18 Pro and the larger Pro Max models last month with starting prices of $1,199 and $1,299, respectively—$100 higher than the 17 Pro models’ launch price.
Unlike previous years, however, Apple didn’t launch a standard “iPhone 18” model alongside the more premium Pro models, holding it off till early next year.
A supply chain manager cited by Nikkei said demand in the second half of this year isn’t as strong as in previous years, likely because there’s no baseline iPhone 18.
Unlike the major design change on the iPhone 17 Pro, the new 18 Pro models are a more iterative improvement, with a faster chip and a more sophisticated main camera.
How Has This Affected Apple’s Shares?
Apple’s stock price dropped 1.6% in premarket trading early on Friday to $334.89, after the report. However, the company’s stock is up nearly 8% since last month’s iPhone event, where it also showed off a new Apple Watch with advanced Siri AI features.
Tangent
Unlike previous years, the iPhone 18 Pro models won’t be the company’s flagship smartphone launch for 2026. Along with the Pros, Apple last month announced the iPhone Duo, a passport-sized phone with an inner 7.6-inch screen that folds out to a size that is similar to the iPad Mini. The iPhone Duo is Apple’s first foldable smartphone, although Samsung, Google and other Android phone makers have been releasing their own foldables for the past few years. The Duo is also Apple’s most expensive phone, starting at $1,999. It’s unclear if the component cuts reported by Nikkei will also affect the Duo, which is set to launch on October 23.
further reading
Apple cuts iPhone 18 Pro orders due to soft demand (Nikkei Asia)
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