Report: Apple cuts iPhone 18 Pro orders; demand weaker than expected after price increase.
Apple is facing pressure from lower-than-expected demand after the launch of its new flagship products.
According to Nikkei Asia on Friday, citing multiple sources familiar with the matter, Apple has become more conservative in its shipment forecasts since early September. Two of the sources said that component orders for the iPhone 18 Pro and Pro Max in October have been cut by at least 15% compared to the original plan, due to weaker-than-expected market demand. An executive-level source revealed that orders for Apple's high-end models in October were cut by between 15% and 20%.
Meanwhile, UBS analysts pointed out in a research report this week that delivery wait times for the iPhone 18 Pro are decreasing in more than 30 markets. UBS stated, "The decreasing wait times against a backdrop of stable supply, combined with the demand elasticity risk brought about by recent price increases, are increasingly worrying." As a result, whether the first foldable screen model, the iPhone Duo, can achieve strong sales after its launch on October 23rd faces even greater uncertainty.
Price increase of 100 yuan puts pressure on demand for high-end models
Apple released its new generation of flagship iPhones on September 9th. The iPhone 18 Pro starts at $1199, and the iPhone 18 Pro Max starts at $1299, both models representing a $100 price increase over the previous year. They officially went on sale on September 18th. The first foldable phone, the iPhone Duo, has a starting price of $1999 for the 256GB base model and will launch on October 23rd in 70 countries and regions.
Sources familiar with the matter told Nikkei Asia that price is the core factor suppressing demand. "This price is simply too high for a smartphone," said one person with direct knowledge of the situation. The person also indicated that, given the market performance of the iPhone 18 Pro and Pro Max, the iPhone Duo is expected to face a similar fate shortly after its launch.
Despite pressure on shipments, the impact on Apple's revenue remains relatively limited because the prices of all models have increased by at least 10% compared to last year, creating a certain offsetting effect between volume and price. Apple's supply chain also has extensive experience in flexibly adjusting production capacity according to market changes.
Another source with direct knowledge of the situation pointed out that from late August to October, sales demand was weaker than in previous years, but this was partly due to Apple's adjusted release schedule this year. Apple prioritized the launch of three high-end models this year, postponing the release of the standard iPhone 18 and the new generation iPhone Air until next spring. "The boost to sales from the standard iPhone 18 this year won't be seen until the end of the year," said a supply chain manager.
Despite continued industry headwinds, Apple is still expected to expand its market share.
The current weak demand for high-end models reflects the structural predicament facing the entire smartphone industry. The global smartphone market is experiencing unprecedented shortages of memory chips and rising costs of components and raw materials. IDC predicts that global smartphone shipments will see the largest year-on-year decline in history in 2026, falling by 16.7%, and this slump is expected to continue into 2027. However, IDC also points out that driven by soaring material costs, smartphone manufacturers have raised prices, with the average selling price this year increasing by 27.6% compared to last year.
In comparison, Apple is less impacted than Android manufacturers in the first half of 2026, with the latter having already significantly lowered their shipment forecasts. Counterpoint analyst Yang Wang predicts that Apple and Samsung, focused on the high-end market, will benefit from the pressure on low-priced manufacturers, with their market share expected to rise from less than 20% in 2025 to over 22% in 2026.
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