Apple reduces component orders for iPhone 18 Pro due to rising chip costs
According to a report from Nikkei Asia, Apple has instructed some of its suppliers to reduce the production of components for the newly launched iPhone 18 Pro and iPhone 18 Pro Max. This decision follows an increase in memory chip prices that have driven up manufacturing costs. The reduction is estimated at around 15%, signaling a potential slowdown or adjustment in Apple's initial demand projections for these flagship models. The move highlights ongoing supply chain challenges, particularly related to semiconductor pricing and availability, which are impacting production planning across the tech industry. This development could affect suppliers such as TSMC (TSM) and other component manufacturers who rely heavily on orders from Apple. It may also influence investor sentiment toward both Apple's product strategy and its broader supply chain resilience.
Topics: iPhone production cut supply chain