According to Nikkei Asia's findings, Apple asked suppliers to scale back October production of components, with some orders falling 15%–20% from initial requests.
Apple shares dropped approximately 1.9% in early premarket trading Friday following the report.
The unexpected pressure highlights an unusual consequence of the artificial intelligence boom: the same data center spending driving semiconductor profits is making consumer electronics more expensive.
Apple Cuts iPhone 18 Pro Orders as Prices Rise $100
Apple introduced the iPhone 18 Pro and Pro Max in September, with starting prices of $1,199 and $1,299 respectively.
Both models cost $100 more than their predecessors, partly reflecting rising memory and storage expenses.
The price increases come as demand for high-performance chips accelerates across AI infrastructure.
Earlier this year, Apple also raised prices on several MacBook and iPad models after warning that memory costs had become increasingly difficult to absorb.
The latest reports complicate expectations for Apple's AI upgrade cycle, which investors hoped would encourage millions of existing iPhone owners to purchase newer devices.
However, the reported component reductions do not necessarily represent an equivalent decline in finished iPhone sales.
AI Memory Shortage Is Becoming Apple's Problem
AI data centers require enormous quantities of advanced memory, competing with smartphones and computers for semiconductor production capacity.
The demand surge has already transformed the economics of memory manufacturers.
Samsung recently forecast nearly $80 billion in quarterly operating profit, benefiting from the same AI memory boom now pressuring Apple's costs.
Meanwhile, TrendForce estimated that the iPhone 18 Pro's component costs could rise approximately 38% compared with its predecessor.
Memory's estimated share of the device's bill of materials increased from roughly 10% to 34%.
What Does This Mean for Apple Stock?
The reported reductions raise questions about whether Apple's premium pricing strategy can withstand persistent component inflation.
Apple previously faced supply-chain pressure even as iPhone revenue continued growing.
