Apple stock falls following report that company is cutting component orders in response to soft iPhone 18 Pro demand

Apple’s (AAPL) demand for the iPhone 18 Pro is reportedly slowing due to rising prices, forcing the company to ask its suppliers to reduce production of components for the phones.

According to Nikkei Asia, Apple reduced its orders for October by around 15-20% compared to initial estimates.

Apple shares fell more than 2.5% in early trading Friday.

Like the rest of the tech industry, Apple is facing a severe shortage of memory and storage chips due to incredibly high demand from building AI data centers.

This has forced companies ranging from smartphone and laptop makers to game console producers to raise the prices of their devices.

Apple has increased the price of its iPhone 18 Pro line by $100, to $1,199 for the iPhone 18 and $1,299 for the iPhone 18 Pro Max. It also increased the prices of its various iPads and Macs.

According to Gene Munster, managing partner of Deepwater Asset Management, lead times, or the time it takes from ordering a new iPhone to delivery, decreased by 31% for the iPhone 18 Pro, but increased by 1% for the iPhone 18 Pro Max.

Combined, he said, delivery times are roughly in line with last year for the iPhone 17 Pro line.

Apple is also preparing to ship its $1,999 foldable iPhone Duo on October 23, which could cannibalize sales of the iPhone 18 Pro.

“The rapid decline trend in recent weeks is more telling and dampens the case for a measurable rise in the December quarter,” Munster wrote in a note to investors.

“The reason is that the most valuable lead time data point is the most recent data point. The wild card is the Duo, which I continue to believe will surprise on the upside. For the first year, I expect units near (20 million), compared to current estimates which call for around (10 million),” he added.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

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