Apple has reportedly asked suppliers to reduce component orders for the iPhone 18 Pro and iPhone 18 Pro Max, trimming October volumes by between 15 and 20 per cent from initially requested levels. The news sent shares down 1.6 per cent in premarket trading on Friday, raising fresh questions about demand for the company's latest flagship handsets.
The cutback reflects a more cautious approach to shipments that Apple is said to have adopted since early September. An executive-level source told Nikkei Asia that it remained unclear how demand would develop over the coming months, adding uncertainty to an already complicated picture for the premium range.
Nikkei Asia, citing people familiar with the matter, pointed to higher prices as a key factor weighing on consumer appetite. Finance publication Nikkei Asia reported that Apple unveiled the iPhone 18 Pro and Pro Max on 9 September, pricing them at $1,199 and $1,299 respectively, each $100 more than their predecessors, with both going on sale on 18 September. The increases partly reflect an ongoing memory chip shortage that has driven up component costs and pushed consumer electronics manufacturers to pass those costs on to buyers.
The scale of the order reductions suggests Apple's latest models are encountering resistance at those elevated price points, complicating the company's strategy of sustaining growth through its premium hardware line.
The news prompted a swift reaction among retail traders. Apple climbed to second place on the Stocktwits trending list on Friday, with sentiment registering as bearish for a second consecutive day. Traders expressed concern about a deeper selloff, particularly given that the stock had recently touched an all-time high.
One complicating factor is worth noting when reading the figures. Apple deliberately staggered this year's iPhone launch cycle to accommodate its first foldable handset, prioritising three premium models while pushing the standard iPhone 18 and a next-generation iPhone Air to a spring release. That unusual sequencing makes direct year-on-year comparisons harder to interpret, and leaves some question over whether the order adjustment reflects genuine softness or a planned recalibration of the production schedule.
Even so, the reported scale of the cut and its timing will do little to ease investor concerns about whether Apple's premium pricing strategy can hold up against stretched consumer budgets and tightening component economics.
