Apple Cuts iPhone 18 Pro Output as Higher Prices Weaken Demand 1 Month After Launch

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 · Nikkei Asia · Oct 9

Apple has told some suppliers to reduce component production for the newly launched iPhone 18 Pro and iPhone 18 Pro Max after weaker-than-expected early sales.
Soaring memory chip costs pushed up the phones’ prices, and suppliers say the higher price tags have cooled consumer appetite for Apple’s premium models.
The pullback comes about 1 month after the September launch, signaling a softer reception for the top-end lineup than Apple and its supply chain had anticipated.

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Nikkei Asia5h ago

Apple Cuts iPhone 18 Pro Production Due to Soft Demand and High Costs

Reuters5h ago

Apple cuts iPhone 18 Pro orders due to soft demand, Nikkei Asia reports | Reuters

Hong Kong Standard1m ago

Apple cuts iPhone 18 Pro orders due to soft demand, Nikkei Asia reports

12 Sources

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

Will Apple's aggressive trade-in promotions be enough to save the iPhone 18 Pro from a market flop?

Could Apple's sudden production cut actually be a calculated move to protect its massive profit margins?

Apple Cuts iPhone 18 Pro Output as Higher Prices Weaken Demand 1 Month After Launch

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