Apple has reportedly asked suppliers to reduce component production for its flagship iPhone 18 Pro and Pro Max models. October orders are being cut by 15% to 20%.
The reduction is attributed to weaker-than-expected consumer demand, which may be linked to higher retail prices resulting from increased memory chip costs. Apple shares fell after the news.
The order cuts could affect the iShares Semiconductor ETF (SOXX), whose holdings include many Apple suppliers. Skyworks (SWKS) shares declined, while the broader semiconductor market showed resilience.
Reports said the sell-off was concentrated among companies in Apple's direct handset supply chain. Other forces, including AI demand, helped support the wider chip sector.