Too pricey to sell? Apple cuts iPhone 18 Pro orders by 20%, Duo faces similar risk

Apple has asked some suppliers to cut production of components for its iPhone 18 Pro and iPhone 18 Pro Max after higher memory chip costs and price increases weighed on demand, Nikkei Asia reported.

The slowdown has also raised concerns about the prospects for the company's first foldable smartphone, the iPhone Duo, which starts at $1,999 (Rs 2,99,900) in the US and India, respectively, and is set to go on sale later this month, as per the report.

Component orders for October have been reduced by at least 15% from Apple's original requests, according to people familiar with the matter cited by the Japan-based publication. Two sources said the cuts reflected weaker-than-expected demand for the premium models.


Also Read: iPhone 18 Pro Max users face major AT&T glitch: Apple asks some US users to swap phones

"In October alone, we are seeing orders from Apple reducing by 15% to 20% for both the premium models; we don't know how things would develop from here," an executive-level source told Nikkei Asia.

The cuts will affect production volumes for some suppliers in October, depending on their production lead times. It remains unclear whether Apple will make further reductions from November.

Will Apple's Rs 2.99 lakh foldable iPhone face the same fate?

The demand concerns have put the spotlight on the iPhone Duo, Apple's first foldable smartphone. The company plans to roll out the device in 70 countries and regions from October 23. Its starting price is $1,999 (Rs 2,99,900) for the 256GB model.

"It's just too expensive for a smartphone," a person with direct knowledge of the situation told Nikkei Asia.

"In light of the demand for iPhone 18 Pro and Pro Max, we anticipate a similar fate for iPhone Duo soon after it becomes available," the person added.

Apple has also been working with suppliers to improve production yields for the foldable device, Nikkei Asia reported last month. Its folding screen makes manufacturing more complex, while Apple's quality requirements add to the challenge.

iPhone launch schedule may be affecting demand

The softer demand for the Pro models may partly reflect Apple's decision to change its launch schedule this year, Nikkei Asia reported.

Apple has prioritised three premium models for its latest launch cycle, while the standard iPhone 18 and the next-generation iPhone Air are expected to arrive in spring 2027. The delayed launch of the standard model could also postpone a boost in component orders and sales volumes.

"We do find the demand in terms of volume from August for the second half of this year is not as strong as previous years when all the new models are introduced all together," a supply chain manager told Nikkei Asia. "This year, the standard iPhone 18, which could provide a boost to volumes, will not require components until toward the end of the year, for launch in early next year 2027."

Also Read: Apple says iPhone Duo's foldable display layer can be replaced

The production cuts may not immediately translate into lower revenue for Apple because the new models are at least 10% more expensive than their predecessors, according to the report.

Longer delivery queues are easing

Signs of softer demand have also emerged in delivery estimates. UBS analysts said average waiting times for iPhone 18 Pro deliveries had declined across more than 30 markets.

"Declining wait times against a stable supply backdrop is an increasing concern in our view, particularly given the recent price increases that raised the risk of demand elasticity relative to prior launches," Nikkei Asia cited the analysts as saying in a note this week.

Apple launched the iPhone 18 Pro and iPhone 18 Pro Max on September 9. The iPhone 18 Pro starts at $1,199 (Rs 1,64,900), while the Pro Max starts at $1,299 (Rs 1,79,900). Both models cost $100 more than their predecessors and went on sale on September 18.

Memory chip shortage pushes smartphone prices higher

The smartphone industry is facing a shortage of memory chips alongside rising component and material costs, according to IDC. The research firm expects global smartphone shipments to fall 16.7% in 2026, marking the industry's largest year-on-year decline, while average selling prices are forecast to rise 27.6% as manufacturers pass higher costs on to consumers. IDC expects the downturn to continue into 2027.

The Economic Times has reported that rising DRAM and NAND memory costs, as chipmakers prioritise components for artificial intelligence data centres, are pushing up electronics prices in India. A weaker rupee has added to the cost pressures.

Nikkei Asia reported that Chinese smartphone makers Xiaomi, Oppo and Vivo also cut their 2026 shipment targets amid rising costs and component constraints. Meanwhile, Counterpoint Research has said Apple and Samsung are better positioned to gain market share as manufacturers focused on lower-priced devices face greater pressure.