AI’s memory chip crunch reaches phones as Apple reportedly cuts iPhone 18 Pro orders
Apple asked suppliers for at least 15% fewer parts in October, according to Nikkei Asia. Memory prices pushed up by AI data centres are a key reason cited. Apple has not commented.
How this story was checked
- ResearchedWith AI assistance · 2 sources
- AI source checkEach sentence matched to its source
- Editor approvalMayank Sahu · 11 Oct, 20:01
- Published11 Oct, 19:50
- ↻Updated · v2Re-checked · 11 Oct, 20:01
In short
Apple told some suppliers to cut October component orders for the iPhone 18 Pro and Pro Max by at least 15%, Nikkei Asia reported. A memory-chip shortage driven by AI data centres is raising costs. Apple has not confirmed the report.
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The report
Nikkei Asia reported on 9 October that Apple asked some suppliers to cut production of components for the iPhone 18 Pro and iPhone 18 Pro Max.12 October orders are at least 15% below Apple's original requests, according to Nikkei's sources, and one source put the drop at 15% to 20%.1 Reuters said it could not immediately verify the report.2 Apple did not respond to requests for comment from Reuters or Fortune.12
This is a single report based on people familiar with the matter. Anawords labels it unconfirmed until Apple or another independent outlet confirms it.
The AI link
The iPhone 18 Pro starts at $1,199 and the Pro Max at $1,299, each $100 more than the model it replaced.12 Fortune reports that a global memory-chip shortage, driven by companies building AI data centres, is raising costs, and Reuters also cites AI data-centre demand for chips and memory.12
J.P. Morgan estimates DRAM prices will have risen more than 400% from the start of 2024 to the end of 2026, according to Fortune.1 IDC forecasts that 2026 smartphone shipments will fall 16.7%, the same report says.1 In July, Tim Cook, then Apple's chief executive, called memory pricing a "100-year flood", Fortune reports.1
Why it matters
AI companies are buying a growing share of the world's memory chips for data centres. That pushes up costs for phones, laptops and other devices, which can lead to higher prices and weaker demand. If confirmed, the iPhone cuts would be one of the clearest signs yet of that knock-on effect.
Fact ledger
How labels workQuestions readers ask
Did Apple cut iPhone 18 Pro production?
Nikkei Asia reports that Apple cut October component orders by at least 15%. Apple has not confirmed it.
Why are phones getting more expensive?
Memory chips cost more because AI data centres are buying a growing share of supply, according to Fortune and Reuters.