Even though the iPhone 18 launched just last month in September, Asian suppliers of parts and components needed in the production of the new iPhone 18 models say Apple is already cutting back on orders for these parts due to slack consumer demand compared to historical trends. The culprit killing demand is most likely the fact that these models are coming out at historically high prices.
Learn more about Apple cutting production on its latest iPhone 18 models…
In an exclusive report by Nikkei Asia, we are learning details of what appears to be a troubled startup for Apple’s latest iPhone 18 models. The iPhone, as you might know, is the company’s bread-and-butter product category that has singularly and dramatically expanded the Apple ecosystem around the globe.
Although the company launched this latest series of iPhones just a few weeks ago with its typical hype and hoopla, there seems to be little question that the new higher prices for the iPhone 18 Pro and iPhone 18 Pro Max have dampened the enthusiasm of Apple fans. This has led to a lower and slower pickup than the company has traditionally experienced upon the launch of a new series of smartphones.
A Higher Premium Impacts Consumers
Apple kicked off this new series on September 9, with iPhone 18 Pro starting at $1,199 and iPhone 18 Pro Max starting at $1,299. Each of these models came out at a $100 premium over the previous version. They were announced on September 9 and began shipping on September 18.
The company also launched its first foldable smartphone, the iPhone Duo, which carried an eye-popping price of $1,999 MSRP for the basic 256GB configuration. In fact, the Duo is so expensive that many believe most consumers will purchase it as part of Apple’s leasing program to help moderate the cost impact by offering more affordable monthly payments. The Duo begins shipping tomorrow, October 23.
Apple Not Immune from Rising Component Prices
Apple, like all technology brands, is not immune from supply chain issues that have resulted in core components – especially memory chips – rising dramatically in price. It had no choice but to pass this along to consumers. Even though Apple is largely a supplier of premium smartphones, it seems that inflation-weary consumers are finally saying no. “Maybe I’ll stick with my current model for another year,” as one friend said to me.
It’s just too expensive for a smartphone. 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.
A confidential source connected to an Apple supplier as quoted by Nikkei Asia
Troubles Impacting the Entire Global Smartphone Community
This turn of events is not just an Apple phenomenon; the entire global smartphone market has been hit by chip shortages, rising prices, and particularly memory chip price inflation. According to market researcher IDC, the whole industry this year will see its largest-ever year-on-year decline in shipments, with shipments estimated to drop 16.7% in 2026. Worse yet, IDC says the decline will continue into 2027. Average selling prices are up 27.6% year-over-year, which helps somewhat to offset unit declines…but may be the source of these declines…so perhaps both a blessing and a curse.
Perhaps as a result of different product introduction cycles, Apple is just now feeling the market reaction to new, higher prices. However. the Android world has already been struggling with it all year long. Like Apple, many Android suppliers have had to cut their shipment forecasts dramatically due to softening consumer demand.
The Android-Based Community has Struggled With the Same Issues All Year
Many Android-based brands hit more mainstream prices and therefore actually enjoy greater market share than Apple or Samsung. However, mainstream consumers are even more price-sensitive, so the Android community has not escaped the pain of slowing sales.
Actually, IDC believes that Apple and Samsung have an opportunity to pick up market share against the low-cost and mainstream smartphone competitors in this dynamic environment. However, this emerging trend of slow pick-up of the iPhone 18 Pro and Pro Max is not a good sign.
Is Apple Adopting a More Conservative Strategy?
Some of the parts supplier executives told Nikkei Asia that Apple appears to be adopting a more conservative approach. With barely more than the first wave of production hitting stores, Apple is already cutting future production by double digits.
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.
Confidential source from an Asian Apple parts supplier, as quoted by Nikkei Asia
For the moment, none of the Nikkei Asia sources had any visibility as to what Apple may be planning for November orders. But it’s clear these suppliers are nervously watching as circumstances unfold.
To learn more about the Apple iPhone 18, visit apple.com.
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