Is the iPhone 18 too expensive? The report on Apple's unusual step

Apple has instructed suppliers to cut component orders for the iPhone 18 Pro and iPhone 18 Pro Max by at least 15% in October, amid weak consumer demand. The main reason: a surge in memory chip costs due to demand for AI server farms, which has led to a $100 increase in device prices. The price hike is cooling demand for the new premium devices.

Apple has instructed its suppliers to cut production of components for its new flagship devices, the iPhone 18 Pro and iPhone 18 Pro Max, by at least 15% in October. The cut is due to weak consumer demand, influenced by a surge in memory chip costs and the devices' own price increases. According to a report in Nikkei Asia, Apple has become more conservative in its shipment volumes since the beginning of September. The background to the crisis lies in the arms race of technology companies purchasing massive quantities of memory chips for AI server farms, which has sparked a global shortage and price hikes. The opening prices for the iPhone 18 Pro and Pro Max models stand at $1,199 and $1,299, a $100 increase compared to the iPhone 17 series. Apple has not yet responded to a Reuters inquiry.