Investing.com-- Apple (NASDAQ:AAPL) shares fell Friday after the tech giant told some of its suppliers to cut production of components for its recently launched iPhone 18 Pro and Pro Max models, Nikkei Asia reported on Friday, citing multiple sources familiar with the matter.
The technology giant was seen turning more conservative on shipments since early September, with component orders for October being cut by 15%-20% from what was originally expected, the Nikkei reported.
Apple shares slid 2.3% in early U.S. trading by 09:48 ET (13:48 GMT).
The cuts came amid weaker-than-expected market demand for the new iPhone line, as soaring memory chip and component prices forced price hikes and dented consumer demand, the Nikkei report said.
But the Nikkei report said the weaker component demand could also be driven by Apple changing its launch schedule for the 18 series, with the company first launching the premium line– the 18 Pro, Pro Max, and the iPhone Duo– in September.
The company will launch the base iPhone 18 and an upgraded iPhone Air in early-2027. The base model iPhone was seen gaining increased popularity last year with the iPhone 17 line, and may bring in more sales for the company.
Still, the Nikkei report highlighted the growing headwinds faced by consumer electronics companies, as they struggle with rising component costs.
Global memory and electronics supplies were largely crimped by outsized demand from the artificial intelligence industry. Recent comments from memory chip major Micron suggested that this tightness was likely to persist well into 2027.
Vahid Karaahmetovic contributed to this report.
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