Apple stock falls on report that company is cutting component orders on soft iPhone 18 Pro demand

Apple's ( AAPL ) iPhone 18 Pro demand is reportedly slowing due to higher prices, forcing the company to tell its suppliers to cut back on component production for the phones.

According to Nikkei Asia , Apple reduced orders for October by roughly 15% to 20% versus initial estimates.

Apple stock declined more than 2.5% in early trade on Friday.

Like the rest of the tech industry, Apple is facing a severe shortage of memory and storage chips due to incredibly high demand from the AI data center build-out.

That has forced companies ranging from smartphone and laptop makers to gaming console producers to raise prices across their devices.

Apple raised the price of its iPhone 18 Pro line by $100 to $1,199 for the iPhone 18 and $1,299 for the iPhone 18 Pro Max . It also increased prices on its various iPads and Macs.

According to Deepwater Asset Management managing partner Gene Munster, lead times, or the time it takes from ordering a new iPhone until it is delivered, have fallen 31% for the iPhone 18 Pro, but have increased 1% for the iPhone 18 Pro Max.

Combined, he said, the lead times are about in line with last year's for the iPhone 17 Pro lineup.

Apple is also preparing to ship its $1,999 foldable iPhone Duo on Oct. 23 , which could cannibalize sales of the iPhone 18 Pro.

"The trend of the fast decline in recent weeks is more telling, and softens the case for measurable upside in the December quarter," Munster wrote in a note to investors

"The reason is the most valuable lead time data point is the most recent data point. The wild card is the Duo, which I continue to believe will surprise to the upside. For the first year, I expect units of close to [20 million], compared to current estimates that call for around [10 million]," he added.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley .