Is iPhone 18 Pro Demand Slowing? Apple Reportedly Cuts October Component Orders, Stock Slips Premarket

The reported production cuts come just weeks after Apple shares hit a record high.

• Apple reportedly slashed October component orders for its Pro models by 15% to 20%.
• Higher prices, partly driven by a memory chip shortage, appear to be weighing on consumer demand, Nikkei reported.
• Retail sentiment for AAPL was ‘bearish’ on Friday.

Apple Inc. (AAPL) shares fell 1.6% in early premarket trading on Friday after a report said the company asked some suppliers to cut production of components for its newly launched iPhone 18 Pro and iPhone 18 Pro Max, raising concerns about demand for its latest flagship smartphones.

According to a Nikkei Asia report citing people familiar with the matter, Apple has become more conservative on shipments since early September, slashing component orders for October by 15% to 20% from initially requested levels.

AAPL Stock: Retail Traders Fear Selloff

AAPL climbed to No. 2 on the Stocktwits trending list after the report, as traders grew concerned about a deeper selloff, especially after the stock hit an all-time high.

“AAPL looks ugly. Glad I got out. No position. Rinse and repeat,” said one. Another wrote: “$AAPL growth story feels tapped out. Innovation pipeline looks thin and the law of large numbers is catching up. Priced for perfection but execution risk is real. Not seeing the upside everyone keeps talking about.”

The retail sentiment for AAPL remained ‘bearish’ for a second day as of early Friday. 

Tepid Demand For iPhone 18 Line

An executive-level source told Nikkei that orders had fallen 15% to 20% for both premium models in October, adding that it remained unclear how demand would evolve in the coming months.

The target cuts suggest that Apple’s latest iPhones are struggling to attract buyers at their higher price points, complicating the company’s efforts to sustain growth through its premium hardware lineup.

Price Hikes Weigh On Demand

Apple unveiled the iPhone 18 Pro and Pro Max on Sept. 9, with starting prices of $1,199 and $1,299, respectively – $100 higher than their predecessors. Both models went on sale on Sept. 18.

The higher prices partly reflect the ongoing memory chip shortage, which is driving up component costs and forcing consumer gadget makers to raise prices.

To be sure, Apple staggered this year's iPhone launches to make room for its first foldable phone. The company prioritized three premium models, while postponing the standard iPhone 18 and next-generation iPhone Air until a spring launch.

AAPL Tracks Record High

The pullback comes after Apple shares recently climbed to an all-time high. Shares closed at $340.42 on Thursday, in touching distance of the record closing of $341.07 on Sept. 25. AAPL stock is up 25.6% year to date.

In other news, Apple reportedly appointed insider Steve Smith as head of mergers and acquisitions, while ​moving Adrian Perica to its services division, ‌according to a memo seen by Reuters on Thursday.

Perica, a more than 17-year veteran of Apple's M&A ​and corporate development function, also took ​oversight of iCloud, Fitness+ and News, among ⁠other businesses, in 2023.

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