Apple Cuts iPhone 18 Pro Orders by Up to 20%, Nikkei Reports

Apple has told some suppliers to cut iPhone 18 Pro and iPhone 18 Pro Max component orders by at least 15% in October, citing softer-than-expected demand, Nikkei Asia reported Friday.

The reductions — which one supplier pegged at 15% to 20% for both premium models — mark the first concrete sign that a $100 price hike on Apple's flagship line is testing consumer appetite. Suppliers pointed to price resistance, not Apple's staggered launch calendar, as the main driver.

"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," one executive-level source told the publication.

Apple has not confirmed the reductions and declined to comment.

What's driving the demand drop?

The iPhone 18 Pro starts at $1,199; the iPhone 18 Pro Max at $1,299. Each model costs $100 more than the iPhone 17 Pro line it replaced. Apple unveiled the phones Sept. 9 and started shipping them Sept. 18.

Demand has run softer from late August into October, per Nikkei's sources. Apple has grown more cautious about shipments since early September. The cuts land less than six weeks into John Ternus's tenure as CEO. Ternus, Apple's former hardware chief, succeeded Tim Cook on Sept. 1 and made the iPhone 18 Pro lineup the first flagship launch of his tenure.

A $100 premium price tag looks like the ceiling, not the new floor.

Where is the cost pressure coming from?

Memory chips are the main culprit. J.P. Morgan Global Research estimates dynamic random-access memory, or DRAM, prices will rise more than 400% from the start of 2024 through the end of 2026, as AI data centers absorb a growing share of global supply. On his final earnings call as CEO in July, Cook described memory pricing as a "100-year flood."

The squeeze is rippling through consumer prices, per J.P. Morgan economist Abiel Reinhart:

• Consumer Price Index for software and accessories: up 23% since the end of 2024.
• Producer Price Index for storage devices: up 23% over the same span.
• Import price index for computers, peripherals, and parts: up 37%.

Apple raised prices on Macs and iPads in June to offset the same forces. Apple isn't swallowing the chip shock alone — buyers are footing more of the bill.

Is Apple the only one feeling it?

No. IDC forecasts global smartphone shipments will fall 16.7% in 2026, to just over 1 billion units — the steepest annual decline on record. IDC expects the global average selling price to climb 27.6%, to $581, as makers pass higher costs to consumers.

In June, Nikkei reported that Xiaomi, Oppo, and Vivo each cut 2026 shipment targets by as much as 30%, the second round of reductions that year. IDC expects Android phones to absorb nearly all of this year's shipment decline, while Apple, Samsung, and Huawei lean on scale to weather the crunch. Android makers are taking the bigger hit. No major brand is fully insulated.

How strong is Apple's balance sheet?

Strong, at least through June. For Apple's fiscal third quarter ended June 27:

• Revenue: $109.4 billion, up 16% year-over-year, a June-quarter record.
• iPhone revenue: up nearly 22%, also a June-quarter record.

Cook called it Apple's "strongest June quarter ever," with double-digit growth across iPhone, Mac, and Services in every geographic segment. He also flagged that tight supply would weigh on iPhone, Mac, and iPad sales in the quarters ahead. Apple has the cushion. Not the immunity.

What happens next?

The $2,000 iPhone Duo, Apple's first foldable, goes on sale Oct. 23. One supply-chain manager told Nikkei that the Duo could face similar cuts once it begins shipping.

The standard iPhone 18, the iPhone 18e, and a second-generation iPhone Air are expected in spring 2027, per Bloomberg and other reports — leaving price-sensitive shoppers thin options this fall.

The Oct. 23 Duo launch will tell markets whether the demand softness is about the $100 price hike or the premium tier itself.