Apple Inc. (AAPL) made waves this week as reports surfaced about weaker-than-expected demand for the iPhone 18 Pro and Pro Max. The company reportedly asked some suppliers to reduce component orders by at least 15%, citing demand that fell short of projections. Higher prices, partly due to AI-driven memory costs, were cited as a contributing factor.
Analysts offered mixed perspectives on the situation. Bespoke Investment Group noted that reports of iPhone production cuts from Asia typically emerge annually after launch, often followed by share rebounds. Meanwhile, Gene Munster of Deepwater Asset Management argued that the iPhone 18 Pro lineup is off to a solid start, despite shorter lead times observed in recent weeks.
Looking ahead, Apple’s potential shift to OLED displays for next-generation MacBook Pro models could drive significant growth. Counterpoint Research projects a 50% rise in OLED notebook display shipments by 2026, with another 24% increase in 2027, partly fueled by Apple’s anticipated move.
Production estimates added pressure, with Apple cutting October component orders by 15% to 20% from original expectations. The company has adopted a more cautious approach to shipments since early September, further highlighting demand concerns tied to higher prices.