$AAPL Reportedly Cuts iPhone 18 Pro Component Orders by at Least 15% as AI-Driven Memory Costs Push Up Prices

Apple has reportedly told suppliers to cut October component orders for the iPhone 18 Pro and iPhone 18 Pro Max by at least 15% from earlier plans, after demand for the new premium models came in softer than expected, Nikkei Asia reported, according to Reuters. Some suppliers have seen reductions of 15% to 20%.
AI data centers are using massive amounts of memory chips, restricting supply and raising prices for consumer products. Apple raised the starting prices of the iPhone 18 Pro and Pro Max by $100, to $1,199 and $1,299, respectively.
Key details:
- TrendForce said in September that AI servers continue to crowd out DRAM capacity, contributing to shortages and price increases that could continue into 2027. It expects a 10% drop in global smartphone production in 2026.
- TrendForce's February estimate shows a popular smartphone memory configuration's contract price has almost quadrupled since last year.
- Samsung has raised prices on its Galaxy S26 lineup, and its mobile business lost more than $1 billion in Q3 as component costs rose, Reuters reported.
- Apple's first foldable, the iPhone Duo, goes on sale Oct. 23 at $1,999 with a 7.6-inch inner display and the A20 Pro chip family. Barron's observed that the Duo and cheaper iPhone 18 models may affect demand for the Pro phones.
- UBS analyst David Vogt noted shorter shipping wait times as a signal to watch, while Evercore ISI analyst Amit Daryanani warned that component-order changes may not translate immediately into consumer demand.
Order changes can reflect inventory levels, manufacturing efficiency, product mix and model changes, so a reported 15% order cut does not necessarily mean a 15% drop in iPhone demand.