Apple has reportedly asked suppliers to reduce component production for its latest premium smartphones as consumer demand falls short of initial expectations. According to a report by Nikkei Asia, the company has cut orders for components used in the iPhone 18 Pro and iPhone 18 Pro Max amid rising memory chip costs and higher retail prices. The reported move indicates growing pressure on the technology giant as it attempts to balance production with changing market demand.

The report states that Apple reduced its October component orders by around 15% to 20% compared with its original plans. The company reportedly adopted a more cautious approach to shipments from early September after demand for its new models proved weaker than anticipated. However, the reported production adjustment does not necessarily indicate a long-term decline in sales, as changes to Apple's product launch schedule may also have influenced purchasing patterns.

Higher prices are another factor affecting the latest iPhone models. In the United States, the iPhone 18 Pro starts at $1,199, while the iPhone 18 Pro Max starts at $1,299, representing an increase of $100 over their predecessors. In India, the starting prices are reported to be ₹1,64,900 for the Pro model and ₹1,79,900 for the Pro Max. These higher prices could encourage some customers to delay upgrading their existing smartphones or consider older models instead.

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The pressure on Apple comes amid a global shortage of memory chips, driven partly by rising demand from companies building artificial intelligence data centres. Technology firms are competing for advanced computing components and memory supplies, pushing up costs for manufacturers of smartphones, computers and other electronic devices. As AI-related infrastructure investment expands, consumer electronics companies face increasing challenges in securing components at prices that allow them to maintain competitive retail pricing.

Apple's first foldable smartphone, the iPhone Duo, also faces questions about affordability and manufacturing complexity. The device starts at ₹2,99,900 in India for the 256GB variant, placing it in a high price bracket. Although its folding design may appeal to customers seeking a larger display in a compact device, the cost could limit its potential audience. Producing foldable devices also presents additional engineering and quality-control challenges compared with conventional smartphones.

The broader industry outlook remains challenging as rising component costs threaten to affect smartphone shipments and retail prices. Research firm IDC has forecast a decline in global smartphone shipments in 2026, alongside an increase in average selling prices, according to the NDTV Profit report. Apple has not confirmed the reported order reductions, and it remains unclear whether further production adjustments will follow. The company's next steps will depend on consumer demand, component availability and its ability to manage rising manufacturing costs without further weakening sales.

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