Apple Inc. (NASDAQ:AAPL) experienced a decline in share prices on Friday, following reports indicating that the company has instructed certain suppliers to reduce production of components for its newly released iPhone 18 Pro and Pro Max models.
Apple Allegedly Reduces October Component Orders by 15% to 20%
Nikkei Asia has unveiled that Apple has advised select suppliers to curtail their production of components for the iPhone 18 Pro and Pro Max.
The report reveals that since early September, Apple has adopted a more cautious approach to shipments, with component orders for October slashed by 15% to 20% compared to initial forecasts.
This information suggests that the reductions are occurring in response to demand for the new iPhone lineup falling short of expectations.
Escalating prices for memory chips and components have necessitated price increases, which Nikkei attributes as a factor that has dampened consumer enthusiasm.
Nikkei Proposes an Alteration in Launch Schedule as a Contributing Element
According to Nikkei, the sluggish demand for components may also be indicative of Apple’s revised schedule for launching the 18 series.
The premium models—iPhone 18 Pro, Pro Max, and iPhone Duo—were released in September, while the standard iPhone 18 and a refined iPhone Air are poised for launch in early 2027.
Given its recent success, the base iPhone is anticipated to attract more consumers following the popularity of the iPhone 17 series.
The report highlights the mounting challenges facing consumer electronics companies due to rising component costs.
The global supply of memory and electronic components has been pressured by the burgeoning demands of the AI sector, and insights shared by Micron suggest that these constraints are likely to extend well into 2027.
Investor Munster Predicts Starlink Phone Will Impact Samsung More Than Apple
In a separate development, SpaceX announced on Thursday its acquisition of Grain Management’s nationwide 800 MHz spectrum portfolio, positioning Starlink to potentially emerge as a significant mobile carrier within the U.S.
In a post on X, investor Gene Munster from Deepwater Asset Management speculated that SpaceX may ultimately venture into the smartphone market.
Despite CEO Elon Musk’s reluctance, Munster contends that this development would pose a greater threat to Samsung than to Apple, given that Apple’s “device and services integration is more challenging to disrupt.”
Apple Shares Experience a Minor Decline
AAPL Price Action: As of the latest update, Apple shares are trading at $332.00, reflecting a decline of 2.47%, as reported by Benzinga Pro.
Source link: Benzinga.com.
