Apple (AAPL) shares are down about 2% this morning (trading at about $335) after Nikkei Asia reported that Apple cut October component orders for the iPhone 18 Pro and Pro Max by at least 15% from its initial requests. Apple hasn’t commented.
The reported reason is softer demand. Both phones launched last month at $100 more than their respective predecessors, starting at $1,199 and $1,299, as an AI-driven spike in memory chip prices pushed costs higher.
What Nikkei Reported
The cut covers both Pro models, and it came within weeks of launch. Nikkei tied the weaker demand partly to the higher prices. A supply-chain manager it cited pointed to something else: Apple didn’t launch a standard iPhone 18 this fall. That model is reportedly expected early next year.
What Apple’s Margins Can and Can’t Show
Tim Cook called price increases “unavoidable” in June as chip costs soared. Apple’s company-wide gross margin rose from 46.5% in the June 2025 quarter to 50.1% in the June 2026 quarter, but tariff refunds added about 2 percentage points to the latest figure. Those results predate the iPhone 18 Pro launch.
So more than half of that 3.6-point gain came from tariff refunds. Today’s report suggests higher prices may be weighing on demand, but supplier order cuts don’t show how many phones consumers bought or what margins the new models earn.
Memory makers sit on the other side of this trade. Micron (MU) benefits from the same price spike that forced Apple’s hand.
Price Problem or Timing Problem for Apple?
The open question is how much of the cut is about price and how much is about the missing base model. Easing memory costs could give Apple more pricing flexibility. A standard iPhone 18, reportedly expected early next year, could bring back buyers waiting for a cheaper option, though neither a volume recovery nor steady margins is guaranteed.
None of the reported numbers can settle that yet. The iPhone Duo foldable, starting at $1,999, launches October 23 and is the next read on how far Apple’s buyers will stretch.
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