Surging memory chip expenses, fuelled by AI data centre buildouts worldwide, have made the newest iPhone Pro handsets considerably more expensive—and buyers appear to be taking notice. According to Nikkei Asia's Friday report, Apple has instructed multiple component makers to reduce manufacturing volumes for the iPhone 18 Pro and Pro Max, with October orders running at least 15% lower than initially planned. These two devices represent the first flagship phones launched under the leadership of chief executive John Ternus.
The price increases tell much of the story. Starting at $1,199 for the standard Pro model and $1,299 for the Pro Max—each representing a $100 jump from their iPhone 17 predecessors—the new flagships carry a substantial premium. Multiple suppliers cited in the report attribute the slowdown directly to these higher price points.
Memory chip costs have become the primary culprit behind the pricing pressure. Back in June, Apple acknowledged the strain by raising prices on Mac and iPad products, stating the company could no longer absorb escalating component expenses on its own. A TrendForce analysis from August revealed that the bill of materials for a 256GB iPhone 18 Pro had climbed roughly 38% compared to the 2025 model, with memory representing the largest driver of that increase.
Beyond pricing, Apple's revised product rollout strategy may also be dampening near-term demand. The company unveiled the Pro models on September 9 alongside the iPhone Duo, its inaugural foldable device, with retail availability beginning September 18. However, Apple delayed the standard iPhone 18 and a forthcoming iPhone Air model until early 2027. A supply chain manager told Nikkei Asia that customer activity has remained subdued since summer, likely because the entry-level iPhone lineup remains unavailable.
Apple's stock declined 1.6% in premarket trading Friday, closing at $334.89, according to Forbes. Despite the recent pullback, the shares have still gained nearly 8% since the September launch event.
The iPhone Duo, priced at $1,999 as Apple's most expensive phone to date, is scheduled to reach retailers on October 23.
Source: The Next Web
