Apple cuts iPhone 18 Pro production amid soft demand and rising costs

Apple has instructed select suppliers to scale back component production for its recently launched iPhone 18 Pro and Pro Max models. The move comes amid soft market demand and surging component prices across the consumer electronics sector, according to reports first surfacing on Friday, October 9, 2026.

As one of the prominent tech giants, Apple operates with a massive market capitalization. The company maintains an impressive market cap alongside industry peers such as Microsoft, Alphabet, Amazon, and Meta, trailing behind Nvidia.

The tech giant adopted a more conservative approach regarding iPhone 18 Pro shipments starting in early September 2026. Executive-level sources indicated that component orders for October 2026 are seeing reductions ranging between 15% and 20% for both premium models. An executive-level source stated:

"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."

Executive-level source, via Uniladtech

These order cuts affect production volumes for certain suppliers depending on lead times, while uncertainty remains regarding whether additional adjustments will follow from November onward.

Market demand for the new lineup has softened following price hikes. The iPhone 18 Pro carries a price tag of $1,199, while the larger Pro Max is priced at $1,299. Models have become at least 10% more expensive, a factor driven by spiking memory chip costs during what is known as RAMageddon. Global memory and electronics supplies have faced severe restrictions due to heavy demand from the artificial intelligence industry, a tightness that memory chip major Micron expects to persist well into 2027.

Compounding the softening demand for the traditional lineup is Apple's altered release schedule for the broader series. Unlike previous years when all models debuted simultaneously, the standard iPhone 18 has been delayed for a spring 2027 release alongside an upgraded iPhone Air. Industry sources suggest that withholding the volume-driving standard model until early next year created a temporary lull in overall sales momentum, as volume from August onward fell short of previous years when all new models were introduced together.

Despite the production pullback on traditional candy-bar flagships, Apple continues to push forward with alternative hardware ventures. The folding iPhone Duo is making its way to shelves, carrying a price tag of $1,999. Aiming for an estimated production run of six to eight million units for 2026—some way down from a standard Pro or Pro Max shipping between 20 and 30 million units per cycle—the device relies on Liquid Metal technology designed to minimize display creases. Strict inspection standards have previously hampered manufacturing output for the device, arriving seven years after the Samsung Galaxy Fold.

Market reactions were swift following the production news. According to trading data, Apple shares traded lower on Friday, October 9, 2026, with premarket losses fluctuating between 1.6% and 2.6%. Stock valuations hovered near $332.56, moving within a daily range of $330.70 to $334.49 against a 52-week high of $345.34 and a 52-week low of $243.42, with a P/E ratio of 38.59 and a dividend yield of 0.31%.

What to watch next

• Further supply chain adjustments and potential order shifts from Apple heading into November 2026.
• Market reception and component availability leading up to the spring 2027 launch of the standard iPhone 18 and iPhone Air models.