Apple has notified some suppliers to reduce the production of newly launched iPhone 18, Pro and iPhone 18 Pro Max components. Sources revealed that since early September, Apple has become more cautious about its shipment expectations for the new iPhone, with the order volume for components in October being reduced by 15% to 20% from the original plan. This adjustment is mainly due to the market demand for the new devices falling short of expectations, as well as a significant increase in the prices of memory chips and other components, which has forced Apple to raise the product prices, thereby dampening consumers' willingness to purchase.
New machine demand falls short of expectations, Apple reduces orders for components
Apple has recently begun to adjust the supply chain orders for the iPhone 18 Pro series, requesting some suppliers to reduce the production of related components. This reduction mainly affects two high-end models that were just launched in September: the iPhone 18 Pro and the iPhone 18 Pro Max.
Supply chain reports indicate that Apple has gradually lowered its shipment expectations since early September and cut the orders for related components in October by 15% to 20%.
The weak demand for new devices is closely related to rising production costs. As the prices of memory chips and other electronic components continue to climb, Apple has been forced to increase the selling price of the new iPhone, and the increase in terminal prices has further weakened consumers' purchasing demand.
Adjustment to the product release schedule may also affect the scale of parts procurement.
In addition to market demand factors, Apple's adjustment to its iPhone product release schedule this year may also be one of the reasons for the reduction in component orders. According to the new release timeline, Apple will launch high-end models first in September, including the iPhone 18, Pro 18, iPhone 18, Pro Max 18, and iPhone Duo. The standard version iPhone 18 and the upgraded versions iPhone Air are scheduled to be released at the beginning of 2027.
This strategy has changed Apple's previous approach of launching new iPhone products in a concentrated manner, and it has also led to a differentiation in the production timelines and component procurement times for different models.
It is worth noting that the standard version iPhone was more favored by consumers last year in the iPhone 17 series. With the iPhone 18 standard version being postponed to early 2027 for release, some potential purchasing demands may be delayed and will convert into sales growth after the new models are launched. Therefore, the reduction in orders for high-end model components reflects not only that current market demand is lower than expected but may also be related to Apple's adjustment of its product portfolio and launch timing.
AI Industry competition for storage chip production capacity; the cost pressure on consumer electronics may continue until 2027
Apple's supply chain adjustment this time also reflects the cost pressures faced by the global consumer electronics industry. With the rapid expansion of the artificial intelligence industry, the demand for AI servers and related infrastructure for memory chips and other electronic components has increased significantly, squeezing the available supply of consumer electronics products and driving up prices of parts.
Micron, a manufacturer of memory chips, recently stated that the global shortage of memory chips may continue until late 2027.
This means that consumer electronics manufacturers, such as smartphone producers, may continue to face the pressure of rising component procurement costs for a considerable period in the future. If companies pass on these costs by increasing the selling prices of their products, it could further suppress consumer demand; if they bear part of the cost increase themselves, it may reduce their product profit margins.
For Apple, the key ahead lies in whether demand for high-end iPhone products can recover, and whether the standard version iPhone 18 and the upgraded versions iPhone Air planned to be launched at the beginning of 2027 can drive a new round of sales growth.
