Apple has asked some suppliers to make fewer components for its two newest Pro phones, the iPhone 18 Pro and Pro Max, Nikkei Asia reported on Friday. The move comes at a critical time for the company, as the two models are the first flagship releases under the leadership of new CEO John Ternus. Apple’s decision to reduce component orders reflects the challenges the company faces in an environment of rising costs and market uncertainty.
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According to several sources familiar with the situation, Nikkei Asia reported that Apple’s component orders for October are at least 15% below its initial requirements. This decline in orders can be attributed to a number of factors, including the rising price of memory chips. Companies building AI data centers have increased demand for memory, buying up much of the global supply, which has led to higher prices.
Apple, although it tried to absorb the higher costs, was forced to raise Mac and iPad prices in June, while iPhone prices remained unchanged at the time.
TrendForce estimated that the components in an iPhone 18 Pro 256GB cost about 38% more than those in the 2025 model, mainly due to memory. This significant increase in component costs poses a challenge for Apple as it tries to remain competitive in the smartphone market. Apple’s decision to reduce component orders may be a strategic move to manage costs and adapt to new market conditions.
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However, a change in Apple's release schedule may also be playing a role, according to Nikkei Asia. Apple unveiled the Pro models on September 9 along with the iPhone Duo, its first foldable phone, and put them on sale on September 18. The iPhone Duo, which is Apple's most expensive phone at $1,999, is scheduled for release on October 23.
The introduction of a foldable phone is a significant step for Apple as it tries to compete with other companies that have already entered the foldable device market.
At the same time, Apple has delayed the release of the regular iPhone 18 and a new iPhone Air until early 2027. This delay may have affected demand for the Pro models, as consumers who prefer the more affordable models may wait for their release. A supply chain manager told Nikkei Asia that buyers have been less active since the summer compared to previous years, likely because there is no regular model available for sale.
Apple shares fell 1.6% in premarket trading on Friday to $334.89, Forbes reported. However, the stock has risen nearly 8% since its September launch event, indicating that investors remain optimistic about the company's long-term prospects. Apple remains one of the most valuable companies in the world, and its moves in the smartphone market are closely watched by analysts and investors.
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Apple's strategy to reduce component orders for the iPhone 18 Pro and Pro Max may be an attempt to balance supply and demand while managing rising production costs. As the company moves into new technologies and products, such as the iPhone Duo, its ability to adapt to market changes will be critical to maintaining its leadership position in the technology industry.
