Apple cuts iPhone 18 Pro orders by 20% as premium demand softens

Apple has told some suppliers to cut component production for the iPhone 18 Pro and iPhone 18 Pro Max after higher memory chip costs and retail price increases cooled demand, according to a Nikkei Asia report. October orders are down 15% to 20% from Apple’s original requests, and an executive-level supplier told the publication the pullback affects both premium models.

The real story: premium demand is not infinite

Apple raised the Pro line’s price by $100 over its predecessors. The iPhone 18 Pro now starts at $1,199 and the Pro Max at $1,299, making the new models at least 10% more expensive. UBS analysts say average delivery waiting times have fallen in more than 30 markets, an early warning that demand is softer than a stable supply would suggest.

The pressure is not Apple-specific. IDC expects global smartphone shipments to fall 16.7% in 2026, the industry’s largest year-on-year decline, while average selling prices rise 27.6% as manufacturers pass on higher component and memory costs. A weaker rupee adds further cost pressure in India.

What this teaches about pricing psychology

For years, Apple looked like the exception to price elasticity. The iPhone’s ecosystem and status made many buyers accept regular increases. But elasticity always shows up when the price rise outpaces the perceived value added. Even loyal customers start comparing the new model against the previous generation’s anchor and asking whether the upgrade is worth it.

The takeaway for brand managers:

• Premium positioning does not remove the demand curve; it only shifts where it bends.
• Waiting time is a free, real-time demand signal before quarterly results appear.
• Delaying your volume tier can make demand look weaker than it really is.

The iPhone Duo stress test

Apple’s first foldable, the iPhone Duo, launches on October 23 in 70 countries at a starting price of $1,999 (Rs 2,99,900). One executive-level source said they anticipate a similar demand fate for the Duo soon after it becomes available. Manufacturing complexity and Apple’s quality requirements add inventory and yield risk.

For marketers, the Duo is a live experiment in how far a new form factor can stretch a price anchor. At nearly twice the price of the iPhone 18 Pro, the foldable does not simply need to be desirable; it needs to justify a reference point far above the rest of Apple’s own lineup.

What to do with this

If you are raising prices, build the value case before the increase hits. Track leading indicators such as wait times, pre-order velocity and channel orders. And sequence your portfolio so a lower-priced volume model is not launched too late to support the overall demand curve. Apple’s decision to push the standard iPhone 18 to spring 2027 shows how launch timing shapes the whole demand story.

Source: ETRetail.com