Apple shares (NASDAQ: AAPL) fell around 2% in premarket trading Friday after a report said the company had asked some component suppliers to reduce orders for its latest iPhone 18 Pro and iPhone 18 Pro Max models, raising concerns about demand.
According to a report by Nikkei Asia, Apple has instructed some suppliers to cut component orders for October by at least 15%. People cited in the report estimated that the reductions could range between 15% and 20%.
The reported cuts come as Apple faces higher memory costs and as concerns grow that price increases on its latest premium iPhones may be weighing more heavily on consumers than the company anticipated.
Memory costs put pressure on iPhone demand
The softer-than-expected demand could be linked to rising memory prices, which have increased amid the artificial intelligence boom and contributed to chip shortages.
The higher costs are beginning to affect the smartphone and personal computer markets. Apple has passed on price increases to customers, potentially making its latest devices less attractive to some buyers.
Apple launched the iPhone 18 Pro and iPhone 18 Pro Max last month, raising prices for its Pro models by $100 globally when compared with the previous generation.
The reported production adjustments could signal that demand has not matched the company’s expectations following the launch, although the full extent of the slowdown remains unclear.
Concerns about iPhone 18 Pro demand also raise questions about the reception of Apple’s first foldable, the $1,999 iPhone Duo, ahead of its retail launch later this month.
An earlier report said initial production of Apple’s long-awaited foldable iPhone remained limited, with the company targeting production of 8 million to 10 million units this year.
Apple could fall short of that target if production does not accelerate, according to the report.
Citi remains bullish on Apple
Apple shares had risen for three consecutive sessions before the premarket decline and were approaching their all-time high of $345.
Earlier, Citi reiterated its Buy rating on Apple ahead of the company’s earnings, expected in early November.
Investors are also looking ahead to Apple’s plans to expand its presence in the smart home market. The company is set to unveil a new range of devices at an event in New York City next week.
The expansion comes as Apple seeks to revive its HomeKit smart home platform and use its Siri AI assistant to strengthen its broader ecosystem. The new devices are part of a broader effort to reboot Apple’s smart home strategy.
The reported iPhone production cuts introduce a new uncertainty for investors ahead of Apple’s upcoming earnings report.
The reduction in component orders could prompt investors to reassess sales expectations and Apple’s outlook for its premium smartphone business ahead of the November earnings announcement.
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