Sluggish Demand For New iPhones: Apple Slashes iPhone 18 Pro Orders by 20% as High Memory Costs Hit Demand
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
Apple Inc. has instructed its Asian supply chain partners to slash October component orders for its flagship iPhone 18 Pro and iPhone 18 Pro Max models by 15% to 20% following weaker-than-expected early sales, Nikkei Asia report claimed.
The drastic procurement rollback signals immediate pressure on the tech giant’s latest premium device cycle. Soaring component prices, particularly for high-bandwidth memory chips driven by enterprise artificial intelligence demand, have forced retail sticker prices upward and dampened consumer appetite right out of the gate. It must be Noted that neither Apple nor its direct manufacturing partners have issued official statements regarding the order reductions.
Component Sourcing Feels Immediate Strain
Upstream vendors across Asia bear the initial brunt of the adjustment. Nikkei Asia reports that Apple shifted to a distinctly conservative procurement stance in early September, culminatining in the 15% to 20% cut in October component allocations.
Actual assembly output at primary manufacturing hubs will feel the squeeze depending on individual supplier lead times. An executive-level supply chain source confirmed to Nikkei Asia that while October supplier schedules are being scaled down immediately, it remains uncertain whether additional order reductions will follow in November or December.
Market participants in India took note of the development, with shares of key Apple distributor Redington coming under close scrutiny following news of the supply chain cuts.
Split Launch Strategy Leaves Gap
The order cuts align with an unprecedented change in Apple's product release calendar. The Cupertino giant split the launch schedule for the iPhone 18 generation, prioritizing its premium lineup—the iPhone 18 Pro, Pro Max, and the new iPhone Duo—for a September release.
Meanwhile, standard models like the base iPhone 18 and an updated iPhone Air were intentionally pushed to early 2027.
Standard iPhone models traditionally account for the bulk of unit sales volume globally. With lower-tier entry options sidelined until next year, Apple relies entirely on its costliest devices to drive holiday quarter revenue during an environment of high consumer price sensitivity.
AI Demand Drives Memory Chip Shortage
The broader tech sector continues to grapple with severe supply chain bottlenecks. A global shortage of DRAM and NAND memory chips, driven by tech conglomerates prioritizing capacity for AI data centres, has driven up production costs across all mobile hardware.
Industry research firm IDC projects global smartphone shipments could drop sharply this year as average selling prices rise to offset swelling material costs. Memory chip maker Micron recently indicated that structural tightness in component supply is expected to extend well into 2027.
