Apple has instructed some suppliers to reduce component production for the iPhone 18 Pro and iPhone 18 Pro Max by at least 15% in October, according to Nikkei Asia. This adjustment reflects softer-than-expected consumer demand since late August, coinciding with a $100 price increase for the premium models. The iPhone 18 Pro starts at $1,199, while the Pro Max is priced higher, raising questions about consumer willingness to pay amid rising memory-chip costs, per fortune.com.
The reported order cuts affect some suppliers’ October production volumes depending on lead times, with reductions ranging from 15% to 20% for the premium models. Apple has not confirmed these changes or indicated if further adjustments will occur from November onward. The timing is notable as this is the first flagship launch under new CEO John Ternus, who took over from Tim Cook on September 1, according to fortune.com and Nikkei Asia.
The move highlights challenges in the premium smartphone market, where rising component costs and higher retail prices may dampen demand. The iPhone 18 Pro’s $100 price hike comes amid a broader memory-chip shortage impacting the industry. This development follows a trend of cautious consumer spending on high-end devices, which could influence Apple’s production and pricing strategies compared to previous launches, as detailed by fortune.com.
Apple’s decision to reduce component orders by at least 15% in October marks a significant shift in production planning shortly after the iPhone 18 Pro launch. The company has not disclosed plans for November orders or how it will adjust to ongoing demand fluctuations, according to fortune.com.