Apple Slides After Report Says iPhone 18 Pro Component Orders Slashed, Signaling Early Demand Trouble

Apple Slides After Report Says iPhone 18 Pro Component Orders Slashed, Signaling Early Demand Trouble

Jefferies and Bernstein analysts have already flagged soft demand for the iPhone 18 in major markets. The launch of the iPhone 18 Pro and Pro Max is an early test for CEO John Ternus, with a new report suggesting Apple has told suppliers to cut component production.

Apple shares are down 2% in premarket trading this morning after an overnight Nikkei Asia report said demand for the new flagship iPhone has been disappointing.

Sources told the Tokyo-based news outlet that October component orders for the two premium models (18 Pro and Pro Max) have been cut by at least 15% from initial plans. Another source deep within Apple's supply chain said reductions are between 15% and 20%.

Here's more from the outlet:

"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," said one of the executive-level sources. The order cuts will affect production volumes for some, but not all, suppliers in October due to differing production lead times, and it is not immediately clear whether Apple will make further adjustments from November onward.

Another source with direct knowledge of the situation told Nikkei Asia that volume demand from late August into October has been softer than previous years, but that this could be related to Apple changing its launch schedule for iPhone models. Apple has prioritized its three premium models with launches this year, while saving for a spring release its standard model, which will be iPhone 18, along with the new generation of iPhone Air.

"We do find the demand in terms of volume from August for the second half of this year is not as strong as previous years when all the new models are introduced all together," a supply chain manager said. "This year, the standard iPhone 18, which could provide a boost to volumes, will not require components until toward the end of the year, for launch in early next year 2027."

Click to expand...

Soft demand for Apple's premium lineup is facing resistance among consumers because the ongoing memory shortage has jacked up prices. The iPhone 18 Pro starts at $1,199 and the Pro Max at $1,299, both $100 above their predecessors.



A third source within the Apple supply chain described the new handsets as "just too expensive," adding, "In light of the demand for iPhone 18 Pro and Pro Max, we anticipate a similar fate for iPhone Duo soon after it becomes available."

The Nikkei Asia report confirms what Bernstein technology analyst Mark Newman wrote on Monday, when he warned: "Initial market feedback on iPhone 18 Pro & Pro Max is mixed vs. the 17 lineup. In the US, Pro & Pro Max demand is down low single digits YoY with Pro waiting times shorter vs. Pro Max were longer. China, however, saw launch week sales up 12% YoY. Other regions were mixed."

Last month, Edison Lee, Jefferies' head of China and Hong Kong technology and software research, said, "Weak 18P/PM resale prices vs. 17P/PM remain our clearest sign of softer demand, despite a weekend rebound in lead times that could reflect tighter supply as DUO ramps."

To be fair, the base iPhone 18 hasn't launched and won't be available until spring 2027.

Ternus may quickly discover that Apple is testing the upper limits of consumers' willingness to pay, with higher prices for the iPhone 18 Pro lineup and the forthcoming roughly $2,000 iPhone Duo.

The failed Vision Pro offers a cautionary precedent: premium hardware does not guarantee mass-market demand. The risk now is that further price increases could drag on volumes rather than drive revenue growth.

Tyler Durden Fri, 10/09/2026 - 08:05

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[ H/T ZeroHedge ]