Apple Cuts iPhone 18 Pro Orders 15% as Weak Demand Hits New Models

Q: Are AI data centers secretly to blame for the shocking price hike of the new iPhone 18 Pro?

Yes—indirectly, AI data centers appear to be a major reason the iPhone 18 Pro got more expensive, though they are not the only factor. The clearest link is memory. Multiple reports cited in the background say AI data centers are absorbing huge amounts of DRAM, NAND and especially high-bandwidth memory, prompting chipmakers to prioritize more profitable server products. That has tightened supply for consumer electronics and sharply raised memory prices. TrendForce estimated memory’s share of the iPhone 18 Pro bill of materials jumped to about 34%, up from roughly 10% a year earlier. That cost pressure appears to have fed directly into Apple’s pricing. The iPhone 18 Pro starts at $1,199 and the Pro Max at $1,299, generally about $100 above the prior generation. Apple has reportedly told some suppliers to cut component production after those higher prices weakened demand for the new Pro models. But “secretly to blame” overstates it. Apple’s pricing is also shaped by its own margin goals, premium positioning, broader semiconductor inflation, advanced chip and camera costs, and supply-chain negotiations. Reports also show Apple is pressing display suppliers to lower OLED prices and leaning on trade-ins and financing to soften sticker shock. So the evidence points to AI infrastructure as a significant upstream driver of the memory crunch that helped push up iPhone 18 Pro prices. It is not the sole cause, but it is a central one.

3 articles · Updated · CNBC · Oct 9

October production orders for the iPhone 18 Pro and Pro Max were cut 15% from Apple’s original plan, according to Nikkei Asia, sending Apple shares down nearly 2% in midday trading.
Weaker-than-expected demand for the premium models drove the reduction after the September launch, extending signs that consumer appetite has fallen short of Apple’s expectations.
Higher memory chip costs had already pushed up prices for the Pro lineup, a factor earlier reports said was dampening demand for the new handsets.
The order cut points to a softer start for Apple’s flagship phones and adds pressure on suppliers tied to the iPhone 18 Pro cycle.