Apple has told some suppliers to cut production of components for its newly launched iPhone 18 Pro and iPhone 18 Pro Max, as soaring memory chip costs and price increases have dampened consumer demand, Nikkei Asia reported on Friday.
The iPhone maker has turned more conservative on shipments since early September, with component orders for October being slashed by at least 15% compared with what was originally requested, Nikkei reported, citing multiple people familiar with the matter.
Reuters could not immediately verify the report. Apple did not immediately respond to a Reuters request for comment outside regular business hours.
Tech companies have been scooping up advanced chip-making capacity and memory chips to power AI data centers, sparking shortages and price increases that are expected to shrink both the personal computer and smartphone markets this year.
Apple raised iPad and MacBook prices in June, saying it could no longer shield customers from soaring memory and storage chip costs driven by the AI industry's data center buildout.
Demand for devices has been softer from late August into October, but that could be related to Apple changing its launch schedule for iPhone models, Nikkei reported.
Apple last month unveiled the latest generation of its flagship smartphone, with iPhone 18 Pro and the 18 Pro Max handsets, alongside its foldable phone Duo.
The iPhone 18 Pro and Pro Max start at $1,199 and $1,299, up $100 from the starting prices of the iPhone 17 Pro and Pro Max.
As more AI features are added to iPhones and other products, Apple's demand for high-performance memory has increased, elevating the strategic role of suppliers amid a global shortage.
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