Jefferies and Bernstein analysts have already flagged soft demand for the iPhone 18 in major markets. The launch of the iPhone 18 Pro and Pro Max is an early test for CEO John Ternus, with a new report suggesting Apple has told suppliers to cut component production.
Apple shares are down 2% in premarket trading this morning after an overnight Nikkei Asia report said demand for the new flagship iPhone has been disappointing.
Sources told the Tokyo-based news outlet that October component orders for the two premium models (18 Pro and Pro Max) have been cut by at least 15% from initial plans. Another source deep within Apple's supply chain said reductions are between 15% and 20%.
Here's more from the outlet:
"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," said one of the executive-level sources. The order cuts will affect production volumes for some, but not all, suppliers in October due to differing production lead times, and it is not immediately clear whether Apple will make further adjustments from November onward.
Another source with direct knowledge of the situation told Nikkei Asia that volume demand from late August into October has been softer than previous years, but that this could be related to Apple changing its launch schedule for iPhone models. Apple has prioritized its three premium models with launches this year, while saving for a spring release its standard model, which will be iPhone 18, along with the new generation of iPhone Air
